Fund managers are not buying the idea that bitcoin (BTC-USD) is a good buy after the world’s top cryptocurrency’s recent pullback.

Eighty-one percent of fund leaders and managers asked in a new Bank of America poll report that bitcoin is still considered to be in a bubble even with the deep price decline. Investors see bitcoin as the second most overcrowded traded, behind being long on commodities.

A total of 224 investing managers who had around $667 billion in overall assets under their management took part in the survey.

For sure, bitcoin prices have went through a rough patch lately as investors seemingly focus on every bearish or bullish tweet from crypto influencers like Tesla’s CEO Elon Musk.

Bitcoin prices went down around 37% in May, and are lower 38% from their April high of $64,829.

Prices have gotten a boost this week from bullish statements made by famous money manager Paul Tudor Jones, who said bitcoin was a good way to diversify a portfolio. At $40,000 however, bitcoin prices seem not too far away from the early June number of near $33,000.

Meanwhile, other investors on Wall Street are warning that the risky downside to bitcoin is still high.

J.P. Morgan expert strategist and bitcoin analyst, Nikolaos Panigirtzoglou, said recently that medium-term fair price for bitcoin is between $24,000 and $36,000.

The analyst believes the May crash in the cryptocurrency has badly harmed institutional demand, which will possibly keep prices pressured for the short-term.

“There is a certainty that the low and high dynamics of the previous weeks give a setback to the institutional use of crypto markets and especially of Ethereum¬†and Bitcoin. We note that the simple rise in volatility, especially when compared to gold, is a harmful thing to more institutional usage as it lowers the attractiveness of digital gold compared to traditional gold in large institutional portfolios., Panigirtzoglou said.

Author: Blake Ambrose

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