Bitcoin retreated from its latest record high amid an intensifying debate about whether the latest bull run in cryptocurrencies is evidence of speculative froth in global markets.
Both Bitcoin and a gauge of the top 100 tokens, which includes the likes of Ether, BNB and Solana, are up roughly 60% so far this year. In a Bloomberg Television interview, Bank of America Corp. chief investment strategist Michael Hartnett said markets are showing the characteristics of a bubble in the record-setting surge by the technology sector’s so-called Magnificent Seven stocks and the all-time highs in crypto.
For Bitcoin, supporters point to about $11.6 billion of net inflows into dedicated US exchange-traded funds and an upcoming reduction in the token’s supply growth as fundamental supports.