Europe’s Largest Asset Manager Predicts Brutal Bitcoin Correction

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Last Updated on 27 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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The name Amundi may not mean much to you, but its official figures reveal that it is the largest asset management company in Europe. In fact, managing almost 2 trillion Euros of wealth. Not too surprising that it is of French origin and in the hands of Crédit Agricole and Société Générale, both notorious Bitcoin bashing banks.

Faced with the reality that Goldman Sachs, JP Morgan and Citibank all delivered their verdict on Bitcoin in recent weeks and started offering products tied to crypto to their demanding clients, Amundi had no choice but to show its hand as well.

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Brutal correction

The last of the American banks prepared to change their mind on Bitcoin was Morgan Stanley, where Lisa Shalett, Chief Investment officer, admitted that cryptocurrencies were beginning to become an investable asset class.

She stated:

Our recommendation is that investors get educated and consider how and whether to get exposure to this bourgeoning asset class in their portfolio.

However, even though European clients are clearly demanding to follow suit and be able to invest in crypto as well, Amundi took the other way.

Outlined in their report, entitled: Crypto-currencies: a bubble or the emergence of a new paradigm in decentralised finance?

Amundi’s deputy chief investment officer Vincent Mortier warned of a possibly “brutal price adjustment” as soon as major regulators would step in. In doing so, he repeated Ray Dalio’s warning of earlier in the week.

Mr Mortier stated:

To date, crypto is neither a proven store of value, nor a recognised unit of account and even less a universal means of payment. Cryptocurrencies have no real economic underlying asset. As a result, there is no valuation model.

In itself, the technology is not without merit… but the nature of it, and the development of it in a decentralised non-regulated manner will soon become impossible to tolerate by central banks.

Repeating views other Bitcoin bashers made, Mr Mortier claimed that regulatory threats could make sure the most famous crypto coin sees a “brutal correction,” but he doubts it would fall back to zero.

Given the possibilities, I wouldn’t be surprised if it goes quickly back $30,000 or $20,000 — what is a fair value is very difficult to say.