New 2019 Cayman Alternative Investment Summit (CAIS) Survey: Half Think Bitcoin Market is a Bubble
Companies in the crypto industry frequently perform research to learn exactly what they can expect from investors. A recent survey was performed by the 2019 Cayman Alternative Investment Summit, revealing that about half of the crypto investors surveyed felt that cryptocurrency represents a bubble, as an asset class.
In the development of the survey, researchers spoke with 100 alternative investors and managers at the event, which took place from February 6th to 9th. However, considering how small of a group that was surveyed, consumers should only consider these results in the scope of 100 entities, rather than assuming these results are true of all alternative investors and managers.
In the study, the opinion that digital currency is the most adequate asset class to represent the bubble was held by 45% of those surveyed. Furthermore, the other options for the asset class that represents the bubble most clearly included U.S. equities (20%), the leveraged loan market (19%), and private credit (16%).
While discussing the technological shifts that this group believes will ultimately influence the market the most is automation and machine learning (45%). However, the second-most influential technological shift appears to be blockchain, according to 38% of the respondents.
The Global Head of Research at Bitwise Asset Management and president of ETF, Matt Hougan, said in February that there is bubble-related bad activity coming from the cryptocurrency industry. However, as he puts it, these matters are “getting cleared up.” Clarifying, he added that he is “way more bullish on crypto assets” than on blockchain technology.
Mike Novogratz, the founder of Galaxy Digital and a former partner at Goldman Sachs, sat down for an interview with Bloomberg TV recently. During the interview, Novogratz was adamant that “we’re not going to bubble back up,” saying that a feasible medium price point would be around $8,000 for Bitcoin.
On the crypto winter, he said that the last year was simply a demonstration of “just how painful popped bubbles can be.”