Bitcoin bubble: 82 per cent of UK institutional investors say bitcoin is going to pop

 
Courtney Goldsmith
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Will bitcoin pop? (Source: Getty)

A new report has revealed a huge majority of UK institutional investors think bitcoin represents an unsustainable bubble.

Bitcoin has soared to unbelievable heights this year. In the past week alone, it rose more than $5,000 to reach an all-time high of more than $15,000.

As its value skyrockets, so do analyst murmurings of tulips and the dot-com bubble.

An annual survey published today by Natixis Investment Managers has identified bitcoin as the top concern among the UK's institutional investors, ahead of traditional market volatility or interest rates.

The research said 82 per cent of Britain's institutional investors - pension funds, insurance companies and endowments - believe that bitcoin is a bubble ready to pop.

Today, bitcoin climbed to $15,000 just one day after it passed $12,000 for the first time ever.

"Is this going to be the next big leg in price discovery or the beginning of the crash market sceptics have been warning against for the biggest cryptocurrency?" asked Naeem Aslam, chief market analyst at Think Markets.

Aslam said bitcoin was "defying gravity".

"Bitcoin is on its eighth straight day of advance, crossing the level of $15,000 with trading volume hitting in excess of $13bn on Thursday.

"The price advance comes amid speculations of a likely correction given the consistent overbought conditions in the market but bitcoin just seems to be defying gravity," he added.

Craig Erlam, senior market analyst at Oanda, said: "It will be interesting to see what happens once Bitcoin futures are launched on Cboe and CME and traders are given the chance to short, should they be brave enough."

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