A major United States fund manager survey or FMS has found Bitcoin to be at the summit of positive investor sentiment.
According to Reuters, 36% of respondents quizzed in the survey pointed to Bitcoin as the most crowded trade ahead of long tech. The Jan 2021 survey by the Bank of America marks the first time ever that ‘long tech’ has had to play second-fiddle to another trade since a similar survey was conducted back in October 2019. The survey inferences also indicate Bitcoin’s rise to prominence among investors with BTC having been third on the pecking order on a similar list back in December last year.
Cash falling down the pecking order
Last month’s edition of the Bank of America survey saw many respondents showing an affinity for risky assets. The risk appetite was high enough to see cash moving down the pecking order for the first time since 2013.
The dethroning of “long tech” does not come as much of a surprise since tech stocks have been taking a beating lately. The second week of January has seen both the Nasdaq and Dow Jones take hits by 150 to 90 basic points respectively.
BTC currently in a bubble?
A similar survey done by Deutsche Bank saw respondents have the opinion that BTC was currently swimming around in a bubble. According to Reuters, the German bank’s respondents see a halving of the BTC price by the end of this year. A 50% decline in the BTC price is the complete opposite of what top crypto analysts and experts have been saying with some predicting a possible $146,000 per coin by the end of this year.
Analysts at JPMorgan are of the opinion that Bitcoin needs to break out of its $36,000 consolidation price soon and retest the $40,000 mark or risk a further 30% retracement drop. With BTC being up 26% year to date, we have a long way to go before we see where the price will end up by the close of this year.
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