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Per the survey, a record number of investors expected higher inflation over the course of this year.
Bitcoin trading, particularly a long position in the first-ever digital currency now ranks as the most crowded trade initiated in January. As reported by Reuters, the claim made by the Bank of America Corp (NYSE: BAC) in the January edition of its Fund Manager Survey also revealed that the Bitcoin long position remarkably overtook Long Tech as the most crowded trade, a position the latter has firmly held onto since October 2020.
The crowding of the Bitcoin trading positions will not come as a surprise to the keen market observers following the strides of Bitcoin in the past 30 days. The coin has increased its price and entire market valuation by more than 55% in the past month, during which time it surged past $42,000, its all-time high (ATH), after about 11 years of its existence. The enticing price pump of Bitcoin is arguably one of the reasons why the long trade positions on the coin must have received increased initiators.
Although, a similar survey conducted by German multinational investment bank and financial services company, Deutsche Bank AG (ETR: DBK) revealed that despite the recent uptick in Bitcoin, investors are more bearish on the longer-term outlook of the coin with about 56% of the investors surveyed said that the cryptocurrency was more likely to halve in value in the next 12 months.
Notwithstanding, the influence of this unnamed profiled investor may not be as profound as that of the more vocal bitcoin proponents including JPMorgan Chase & Co (NYSE: JPM) who believe that the value of the coin will bloom to surpass $146,000 in the long-term. While Bitcoin is trading below its ATH, the current adoption momentum reflecting in the coin’s price indicates a more bullish run is imminent, against the Deutsche Bank survey respondents.
Other Highlights of the BofA Survey Besides Bitcoin Long Record
Besides the Bitcoin long record, the Bank of America survey also revealed investors positioning about other key issues bordering on the economy, inflation, global growth amongst others. Per the survey, a record number of the investors at 92% expected higher inflation over the course of this year.
This inflationary expectation is not uncalled for seeing the soon to be sworn in President Joe Biden is set to push for a new stimulus relief package worth trillions of dollars. This will be succeeded by the printing of more money, the main fuel for inflation.
Despite the turmoil of the coronavirus pandemic, the majority of the investors surveyed came off positive about the global economic outlook, and on the backdrop of this reality, 19% of the investors surveyed noted that they are taking more risk than normal.
Bitcoin is in a state of consolidation, and while the $40,000 price level stands as the coin’s biggest resistance at this time, the fact that it has broken past it before will make it have more and more breakthroughs in the future. At least, the hoard of BTC bulls believes this.