The bet on the growth of the price of the first cryptocurrency turned out to be more popular than buying shares of technology companies. This is the conclusion made by Bank of America following a survey of asset managers in January.
#Bitcoin overtakes “Long tech” as most crowded trade in BofA fund manager survey. Long Bitcoin jumps to top w/36% of FMS investors saying it is the most “crowded trade” dethroning “Long tech” for first time since Oct’19. #2 Long Tech, #3 Short US dollar, #4 Long Corporate Bonds. pic.twitter.com/dmXe9E8I6e
– Holger Zschaepitz (@Schuldensuehner) January 19, 2021
In December, in a similar report, buying bitcoin was the third most popular idea. The purchase of shares in high-tech companies has been the basis for the formation of portfolios by global investors since October 2019.
The growth of the first cryptocurrency by 900% from the lows of March to $ 40,000 forced to reconsider the previous guidelines. The results of the January survey may indicate the further development of bitcoin as a separate asset class.
Digital gold is seen as a hedge against inflation. The study also revealed a record 92% of managers anticipating a jump in inflation this year.
Inflation expectations at an all-time high: Record net 92% of investors in BofA Fund Manager Survey expect higher inflation in the next 12 months. pic.twitter.com/bjJb5FvCzI
– Holger Zschaepitz (@Schuldensuehner) January 19, 2021
Recall that billionaire Mark Cuban called for monitoring the dynamics of interest rates. He believes that their growth can provoke a correction in all assets, including Bitcoin.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
