Bitcoin buying becomes more popular than long-tech stock bets

The bet on bitcoin’s price growth proved more popular than buying tech stocks. Bank of America reached that conclusion from its January survey of asset managers.

#Bitcoin overtakes «Long tech» as most crowded trade in BofA fund manager survey. Long Bitcoin jumps to top w/36% of FMS investors saying it is the most “crowded trade” dethroning “Long tech” for first time since Oct’19. #2 Long Tech, #3 Short US dollar, #4 Long Corporate Bonds. pic.twitter.com/dmXe9E8I6e

— Holger Zschaepitz (@Schuldensuehner) January 19, 2021

In December, in a similar report, buying bitcoin was the third most popular idea. Buying shares of tech-sector companies had been the backbone of portfolios for global investors since October 2019.

Bitcoin’s 900% rise from March lows to $40,000 has forced a rethink of prior benchmarks. The January survey results may point to bitcoin’s further establishment as a standalone asset class.

Digital gold is seen as a hedge against inflation. The study also found a record 92% of managers expecting inflation to rise this year.

Inflation expectations at an all-time high: Record net 92% of investors in BofA Fund Manager Survey expect higher inflation in the next 12 months. pic.twitter.com/bjJb5FvCzI

— Holger Zschaepitz (@Schuldensuehner) January 19, 2021

Earlier, billionaire Mark Cuban urged monitoring the trajectory of interest rates. He believes that rising rates could provoke a correction in all assets, including bitcoin.

Earlier, Macquarie analysts noted potential for further bitcoin growth and risks of regulatory intervention in this process.

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