Amundi CIO Pascal Blanque stated on Thursday that cryptocurrencies like Bitcoin are a ‘farce’ and a symptom of financial market bubbles.
This dip was triggered by a mix of causes, including excitement for low-quality coins, harsh words from Elon Musk, and China's recent crackdown on crypto services. This sell-off became ‘all the more violent as a result of the accumulated response.
There was a comparison between the decline to the 1987 stock market crisis, which took months to recover from. However, because cryptocurrency moves far faster than equities did in the 1980s.
Blanque branded cryptocurrency as a ‘farce’ at a news conference, adding that it was a symptom of market bubbles.
"Bitcoin will be recognized for pushing central banks to adopt digital money," he said, adding that governments and regulators will eventually "turn off the music."
In response to a comment request, an Amundi spokesman stated, "As of now, cryptocurrencies (CCs) cannot be called a form of money because they are neither a proven store of value nor a recognized unit of account, let alone a universal means of payment."
Before diversifying into cryptocurrencies, investors should increase their exposure to the yuan, China's currency, according to Blanque.