Bitcoin Overtakes Tech Stocks as the Most Bought Financial Asset

A recent survey conducted by the Bank of America (BofA) on investment firms with over $500 billion in assets under management showed that investors are very bullish on Bitcoin’s long-term prospects. The survey highlighted that “long Bitcoin” has overtaken “long tech stocks” as the most taken trade in January 2021.

Reuters reported earlier today that this is the first time long positions on tech companies are losing the top spot since October. The news house also mentioned that this is the first time Bitcoin is taking the lead in the financial markets.

Meanwhile, a recent survey carried out by BofA revealed that “long Bitcoin” became one of the top three preferred trades in December by fund managers.

While Bitcoin is building up an appeal in the eyes of investors, traders are increasingly losing faith in the dollar, as USD shorts pile up. The survey placed “short USD” as the third most-crowded trade for January.

The reason for the plummeting demand for the dollar is the aggressive printing of money by the Fed during the peak of the COVID-19 pandemic last year, which is reported to have seen the creation of about 20% of all existing USD.

Investors assert that the Fed’s financing activities are a recipe for inflation, with economists forecasting impending doom for the greenback. That said, investors are stocking up on Bitcoin as a hedge against the falling dollar.

Key BTC Levels to Watch — January 19

Bitcoin saw a positive rally today—as predicted in our last analysis. Once again, the benchmark cryptocurrency hit the $37,827 resistance again but failed to clear the hurdle. This failure triggered another correction over the past few hours to the $36,000 support.

Regardless, it appears that BTC will be supported by our ascending channel one again in the coming hours. That said, we expect to see BTC make another attempt at the $37,827 resistance soon.

Meanwhile, our key resistance levels are at $37,000, $37,827, and $38,500. While our key support levels are at $34,474, $34,000 and $33,000.

Total Market Capitalization: $1.04 trillion

Bitcoin Market Capitalization: $676 billion

Bitcoin Dominance: 65%

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