As bitcoin price continues to trade at unprecedented levels near $7,500, the deputy chief executive of French banking giant Societe Generale has opined the cryptocurrency is in a bubble.
In an interview with Bloomberg, Societe Generale deputy CEO Severin Cabannes was asked about bitcoin’s market valuation in a year where the decentralized cryptocurrency has gained over 650% in value, so far.
The banking executive claimed bitcoin is in a bubble while adding that the bank is neither investing nor interested in the cryptocurrency.
Cabannes stated:
Bitcoin today, is in my view, clearly in a bubble…very clearly. But we don’t know very well what are the market drivers behind this price valuation.
Cabannes comments mirror those offered by Swiss banking giant Credit Suisse CEO Tidjane Thiam who claimed bitcoin was “the very definition” of a bubble, last week.
Bitcoin’s ongoing rally is fueled by the CME group’s plan to introduce bitcoin futures before the end of the year. The world’s largest exchange owner’s intention to list a bitcoin futures contract has led speculators to bullishly predict the “opening of floodgates of institutional demand”, making bitcoin “attractive” to Wall Street.
Still, bitcoin continues to have detractors despite growing awareness and adoption of cryptocurrencies globally as a method of payment and a store of value among retail everyday investors. JP Morgan chief executive Jamie Dimon dismissed bitcoin as a “fraud” and threatened to fire employees adopting or trading the cryptocurrency.
Meanwhile, Cabannes revealed Societe Generale is “very interested, not in bitcoin, but in blockchain technology” pointing to endeavors such as trialing a blockchain-powered trading of liquified natural gas in the global trading arena as well as other prototypes “within the bank.”
He went on to add:
We are not really very keen to invest in bitcoin, but we are very keen to invest in blockchain technology.