According to Bank of America’s latest fund manager survey, “Bitcoin investment” has once again replaced “technology investment” as the busiest trade.
In another comeback to the 2017 bull market, a large US bank fund manager survey, or FMS, placed Bitcoin at the top of positive investor sentiment.
According to Reuters, 36% of respondents in a survey conducted by Bank of America in January 2021 determined that long-term Bitcoin investment is the most trade-intensive ahead of long-term technology investment.
The January report points out for the first time that technology investment has not been number one in BofA’s fund manager survey since October 2019. The result also marks a steady increase in BTC’s positive investor sentiment as Bitcoin was third on the list in December.
Indeed, the December 2020 pressure displayed a healthy appetite for risk assets, with the majority of asset managers releasing cash for the first time since 2013.
However, in the second week of January, both Nasdaq Composite and Dow Jones saw a 150 and 90 basis point drop, respectively, technology stocks, which are struggling in the market.
In 2017, Bitcoin investment was selected as the busiest trade in BofA’s and Merrill Lynch’s global fund manager survey.
In another poll reported by Reuters, this time from Deutsche Bank, respondents described Bitcoin as a bubble. More than half of investors in the survey predicted a 50% price drop for Bitcoin before the end of 2021, according to the report.
Bitcoin is currently showing signs of consolidation above the $ 36,000 mark that could be a catalyst for another venture above its all-time high of $ 40,000. According to JP Morgan analysts, BTC needs to buy $ 40,000 again or risk another 30% correction.
Although Bitcoin fell by about $ 4,000 from the ATH price it achieved on January 8, it has increased by more than 26% to date at the time of writing.