Despite the ongoing sideways trend in the cryptocurrency markets Bitcoin (BTC) is still a very busy business. According to a new survey by Bank of America or BofA This could indicate that the top of the current bull cycle is yet to come.
The latest survey of Bank of America fund managers shows that the “long position in Bitcoin” is now the busiest trade in any market. Almost 45% of respondents say it is ahead of other operations like “Long in Technology”.Bloomberg reported on Tuesday. The new BofA survey included 194 fund managers with $ 592 billion in assets under management.
In the comments of the survey BofA noted that trades classified as busy have historically seen highs in their respective markets. In fact, Bitcoin was trading at around $ 36,000 when the BofA survey found that the long Bitcoin trade was the busiest in January 2021. Bitcoin price then soared, hitting new all-time highs above $ 50,000 in February, which eventually topped $ 64,000 in mid-April.
Long Bitcoin was also voted the most popular trade in the BofA and Merrill Lynch Global Fund Manager polls in September 2017. At the time, Bitcoin was hovering around $ 4,000 before breaking $ 20,000 for the first time in history in December 2017.
The latest BofA survey could add optimism to crypto markets, which are currently showing mixed signals after a major market decline. The ecosystem lost hundreds of billions of dollars after Elon Musk, CEO of Tesla, announced the suspension of BTC payments on car purchases for environmental reasons. He also hinted that he would remove BTC from Tesla’s balance sheet in the second quarter of 2021. Some players in the crypto sector, such as Meltem Demirors, Chief Strategy Officer of CoinShares, believe that BTC’s last price action was due to other reasons, such as selling on tax day.
In another survey conducted in mid-April, BofA reported that 75% of professional investors viewed Bitcoin as a bubble. Some crypto activists suggested on Twitter that most of BofA’s fund managers aren’t trading Bitcoin.
The BofA survey of fund managers, 99% of whom cannot trade Bitcoin, considers “Long Bitcoin” to be the busiest trade. The last time this was in January. It doubled 3 months later.
to???? Zerohedge (@zerohedge) May 18, 2021