Bank of America survey: Long position on Bitcoin has become the busiest type of transaction

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A long position on bitcoin is currently the busiest type of transaction, according to fund managers surveyed by Bank of America in a monthly survey, the results of which were published on Tuesday. This is reported by Reuters.

For the first time since October, a long position in tech stocks was pushed out of the top spot on this list. "Long bitcoin" was supported by 36% of respondents. Over time, their share has increased. In December, for example, this type of operation was in third place. Right now, the third most popular trade is a short position on the US dollar. The observed dynamics indicate the continued openness of investors to risks and the continued rejection of inflation-prone fiat currencies.

Below is a list of the most popular trades by month, according to the fund managers surveyed by Bank of America.

Having caused a stir among retail investors in 2020, technology stocks faced an obstacle in their path in the form of declines in the Nasdaq Composite and Dow Jones indices for the second week of January by 150 and 90 basis points, respectively.

At the end of 2017, Bank of America respondents already called a long position on bitcoin the most popular transaction, while the price of the cryptocurrency was at its previous historical high of about $20,000.

At the same time, the participants of the Deutsche Bank survey call bitcoin a bubble. More than half of them expect the first cryptocurrency to decline by the end of this year. Analysts at JPMorgan say that bitcoin should recover to $40,000, otherwise it risks being under pressure from sellers and falling lower. At the time of publication, BTC is trading around $37,000.