The survey also noted that a long position on bitcoin was seen to be the second most crowded trade by 27 percent of respondents after technology stocks (31 percent) but ahead of environmental, social, and corporate governance (ESG) (17 percent), cyclical stocks (14 percent), and US treasuries (8 percent). A long position is referred to buying an asset hoping its value will enhance over time. Moreover, around 10 percent of respondents expected Bitcoin to outperform other assets in 2021.
Also, read Coinbase on Nasdaq: What the landmark listing means for Indian crypto startups, investors, ecosystems.
Bitcoin has quite exploded over the past 12 months with over 800 percent jump in price from $6,718 as of April 16, 2020, amid increased interest from institutions and large investors such as Tesla, PayPal, Visa, Square, and many more. According to a recent Bloomberg study on crypto outlook for 2021, Bitcoin may even climb over sixfold up to $400,000 in 2021, similar to the bull run of 2013 and 2017. “Our graphic depicts Bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017. To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since 2011 high,” the study had noted.
The total market cap of all cryptocurrencies had topped $2 trillion for the first time earlier this month, with Bitcoin dominating 54.1 percent of it at a $1.09 trillion market cap, according to the data from the crypto tracker CoinGecko. The $1 trillion addition to the overall market cap occurred three months from the $1 trillion market cap as of January 7, 2021. Currently, there are 6,704 coins with a combined market cap of almost $2.3 trillion with 50.9 percent dominance by Bitcoin and 12.4 percent by Bitcoin’s closest rival Ethereum.