Bitcoin Beats Tech to Become Most Crowded Trade in Bank of America Survey

Chief investment officers now consider Bitcoin as the least favorite in their investment priorities, according to the latest survey by Goldman Sachs.

Goldman Sachs conducted the survey during last week’s round table sessions attended by 25 CIOs. During those sessions, it asked the CIOs to give their views and outlook on investment assets, and the results are less pleasing for Bitcoin enthusiasts who were hoping for higher price rides this week. Bitcoin is the least favorite investment choice for 35 percent of the CIOs, although it performed better than initial public offerings (25%) and rate sensitivities (20%).

The survey results contradict those from another survey conducted by the Bank of America in May, which showed that long Bitcoin was the most crowded trade. The 216 panelists in the survey had a total of $625 billion in assets under management.

However, the fall in Bitcoin price from over $50k at that time to the current price of $36,464 should explain the difference in the two survey results. The new survey shows that CIOs have an appetite for China’s A-shares, and Japan’s benchmark Nikkei.

BTCUSD Chart By TradingView

A possible volatile weekend in the onset 

The crypto market is expecting a volatile weekend after the consumer index is published Thursday. Investors are expecting inflation rates to go higher following comments by the U.S. Treasury Secretary Janet Yellen that higher interest rates would be “a plus for policymakers.”

This will be not-so-encouraging news given that Bitcoin has crashed more than 50% so far since hitting an all-time high price of $63,236 in April. However, the price closed Sunday on a recovery trend by reversing a 3.6 percent fall from Saturday. Mass suspension of crypto accounts by China’s Weibo, and a warning from the People’s Bank of China against using crypto caused further drops during the weekend. 

However, more recoveries are expected in the course of this week following the announcement that El Salvador would adopt Bitcoin as a legal tender, and a similar announcement expected from Paraguay. El Salvador President Nayib Bukele said the cryptocurrency would gain 10 million potential new users as a result of the adoption as a legal tender. The National Deputy of Paraguay, Carlitos Relaja hinted at a pending possible positive announcement about Bitcoin through his Tweet last evening.

“As I was saying a long time ago, our country needs to advance hand in hand with the new generation. The moment has come, our moment. This week we start with an important project to innovate Paraguay in front of the world! The real one to the moon #btc &#paypal,”