Long positions in Bitcoin surpassed long positions for tech companies for the first time since 2017, Bank of America reports
Long volumes in Bitcoin have outpaced long positions in tech companies for the first time since 2017. This conclusion was made by experts of Bank of America (BoA), conducting an internal survey, writes Reuters.
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Investors interviewed by the American bank note an unprecedented rise in interest in buying cryptocurrency. Bitcoin is used to diversify the investment portfolio. Over the past three years, this trend has reached new highs due to overheating of world markets.
Nevertheless, the bank’s analyst Michael Hartnett believes that the excess of “extremely optimistic” sentiment leads to an “inevitable” correction of financial markets.
Bitcoin is risky, but so attractive
Along with the confidence of BoA’s customers, the number of searches is growing. As previously reported by the editorial staff of BeInCrypto, the number of search queries for bitcoin in both the English-speaking and Russian-speaking segments overtook those for gold. The last time such results were seen was only in 2017.
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The bank’s customers began to show interest in bitcoin since the end of last year. Then analysts at Bank of America found out that bitcoin is in third place in popularity among investment instruments used by institutional investors.
The largest cryptocurrency by market capitalization has surpassed bonds, gold and stocks in popularity. Most often, investors bought stocks of high-tech companies (52%), the dollar (17%) and bitcoin (15%).
Despite the popularity of cryptocurrency assets, the American bank has been signaling the risks of such an investment since February 2018. In its annual report to the regulator, the bank called the cryptocurrency sector “speculative” and “risky.” At the same time, BoA acknowledged that the widespread introduction of new financial technologies, including cryptocurrencies, “can require significant costs.” It will take effort and money to adjust to evolving industry standards.
Meanwhile, the bitcoin rate continues to strengthen, consolidating within a symmetrical triangle above the $ 36,000 mark. Where the cryptocurrency will move further – read the special material from BeInCrypto.
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