The buy recommendation for Bitcoin has become the most helpful advice of the last decade, given the asset’s incredible profitability. Now it is also the most common transaction among the entire mass of investors, experts at Bank of America say.
According to a recent survey of a financial institution, about 36 percent of respondents identify Bitcoin transactions as the most popular at the moment. The phrase “buy Bitcoin” is slowly becoming synonymous with “technology investment,” with the tech sector showing the highest returns in recent years.
We checked the actual data: now traders and just cryptocurrency lovers are very active in coin trading. According to analysts from The Block, January 2021 has already become a record in the history of the industry in terms of trading volumes on cryptocurrency exchanges, that is, transactions for the sale and purchase of coins have never been concluded so actively.
The total trading volume for this month is currently the equivalent of $ 589 billion, of which $ 330 billion is traded on the Binance exchange. Here is a graph of the all-time indicator
For clarity: the results of a record earlier than December 2017 and January 2018 amounted to the equivalent of $ 307 billion each. That is, this month will clearly bypass them at least twice.
Where is money being invested in 2021?
A poll conducted by the bank in December indicates a drop in investor interest in investing in conventional currencies and instruments, according to Cointelegraph. This trend was noticed in the markets for the first time since 2013. However, some technology stocks are currently experiencing significant market difficulties: in the second week of January, the Nasdaq Composite and Dow Jones fell 150 and 90 basis points, respectively.
That is, the popularity of Bitcoin among traders is now at its peak. And this is happening against the backdrop of a fall in the yield of classic investment instruments, which confirms the logic of what is happening.
In another Reuters poll, Deutsche Bank survey respondents described Bitcoin as a real bubble. According to the report, more than half of the investors surveyed predicted a decline in the price of the main cryptocurrency by at least 50 percent by the end of 2021. Note that such criticism is heard regularly – the last time a Bank of America analyst called BTC a bubble in the first half of the month.
Bitcoin is now showing signs of consolidation – that is, massive trades and strong support – above the $ 35K mark, which could be the catalyst for another bull attempt to climb to the all-time high just below $ 42K.
One way or another, the opinion of the masses is so far weakly combined with the actions of large investors who have been actively investing in BTC over the past few months. The Grayscale digital asset fund added 16,244 bitcoins worth more than $ 600 million to its Grayscale Bitcoin Trust (GTBC) fund yesterday, Decrypt reports.
At the moment, it was the largest purchase of cryptocurrency in both bitcoins and dollars in one day. The fund currently manages a fortune of 632 thousand bitcoins worth $ 24 billion. We wrote about other large owners of the first cryptocurrency in a separate article.
As you can see, large market players are ready to buy BTC in any conditions while the cryptocurrency market continues to grow. According to a recent study by JPMorgan Chase analysts, Grayscale’s investment in the market is so large that even if other investors’ sentiments change dramatically, the fund will be able to contain the likely fall in the price of Bitcoin with its daily injections of money. And since Grayscale recently made the largest investment in the history of the market, the coin industry is becoming more likely to continue its run.
We believe that the market situation speaks in favor of Bitcoin and other cryptocurrencies. Traders are interested in coins and are eager to connect with them, which in turn pushes the current stage of growth further. Moreover, the interest turned out to be so significant that it was also noted by representatives of banks, who usually do not miss the opportunity to criticize BTC.
So now everything looks positive. Judging by what is happening, a new stage in the growth of the blockchain asset industry is indeed at its initial stage. According to experts, this cycle can last at least another one to two years.