Despite the ongoing sideways trend in the cryptocurrency markets, Bitcoin (BTC) is still an active trade. According to new research from Bank of America, this may indicate that the market peak of the current bull cycle has not yet arrived.
The latest survey of fund managers from Bank of America shows that investing in “long bitcoin” is currently the busiest trade in all markets, with almost 45% of respondents indicating that it is ahead of other trades such as “long tech”. Bloomberg reported on. Tuesday. A new BofA poll received responses from 194 fund managers with $ 592 billion in assets.
Global Fund Manager Questionnaire for BOVA. Source: Bloomberg
In its survey notes, Bank of America points out that trades marked as busy have historically imagined an upcoming peak for the markets. In fact, Bitcoin only traded at around $ 36,000 when a BofA study found that Bitcoin’s long-term currency was the busiest trade in January. The Bitcoin price then rose to a record high, exceeding $ 50,000 in February, and finally rising above $ 64,000 in mid-April.
Long Bitcoin was also voted the busiest deal in a September 2017 poll by the director of the Bank of America Merrill Lynch Global Fund. At the time, Bitcoin was trading at around $ 4,000, and in December 2017 it exceeded $ 20,000 for the first time in history.
A recent BofA poll may add some optimism to the cryptocurrency markets, which are currently seeing mixed signals following a severe market downturn. The ecosystem has lost hundreds of billions of dollars after Tesla CEO Elon Musk announced the suspension of BTC payments for car purchases due to environmental concerns. He also suggested getting rid of BTC from Tesla’s balance sheet in the second quarter of 2021. However, some cryptocurrency players such as Meltem Demirors, Chief Strategy Officer for CoinShares, believe that the latest BTC price change should be due to other reasons, such as a tax day sale.
In another mid-April poll, Bank of America reported that 75% of professional investors view Bitcoin as a bubble. Some crypto activists on Twitter have suggested that most BofA managers do not trade bitcoin.