The bitcoin (BTC-USD) price shot back above $40,000 (£28,346) following sessions of losses, but is treading water as fund managers say the cryptocurrency is in a bubble despite the price crash.
According to a Bank of America survey, 81% of fund managers say bitcoin is still a bubble. The flagship crypto fell around 37% last month and its price is down 38% from its $64,829 mid-April peak.
The bitcoin price, which was boosted this week by bullish comments from money manager Paul Tudor Jones and Tesla (TSLA) boss Elon Musk, was once again yo-yoing on Wednesday. It declined 3% to $38,720 on Wednesday afternoon in London.
Other cryptocurrencies have been following a similar trend, with ethereum (ETH-USD) – the second biggest crypto by market cap – falling 5% to trade at $2,420. Meme token dogecoin (DOGE) dropped 3.2% to $0.30.
Cryptos have been boosted by institutional support recently. Several organisations…