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‘Long Bitcoin’ chosen as most crowded trade in latest BofA survey

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Regardless of the continued sideways pattern in the cryptocurrency markets, Bitcoin (BTC) nonetheless stays a crowded trade. In line with a brand new survey from Financial institution of America, this might point out that the present bull cycle’s market high continues to be to return.

Financial institution of America’s most current fund supervisor ballot means that the “long Bitcoin” wager is now the most crowded trade throughout all markets, with almost 45% of respondents indicating it forward of different trades like “long tech,” Bloomberg reported Tuesday. The brand new BofA survey captured responses from 194 fund managers with $592 billion price of belongings below administration.

BofA International Fund Supervisor Survey. Supply: Bloomberg

Within the survey remarks, BofA notes that trades recognized as crowded have traditionally heralded an incoming high for his or her respective markets. Certainly, Bitcoin was buying and selling simply round $36,000 when BofA’s survey recognized lengthy Bitcoin as the most crowded trade in January. Bitcoin’s value subsequently surged to interrupt new all-time highs above $50,000 in February, finally rising above $64,000 in mid-April.

Lengthy Bitcoin was additionally chosen as the most crowded trade in Financial institution of America Merrill Lynch’s international fund supervisor survey again in September 2017. On the time, Bitcoin traded at round $4,000 earlier than breaking $20,000 in December 2017 for the primary time in historical past.

The latest BofA survey could add some optimism to cryptocurrency markets, that are presently experiencing blended indicators after a significant market pullback. The ecosystem shed a whole bunch of billions of {dollars} after Tesla CEO Elon Musk introduced the suspension of BTC funds for automobile purchases because of environmental considerations. He additionally hinted at dumping BTC from Tesla’s stability sheet in the second quarter of 2021. Nevertheless, some crypto gamers like CoinShares chief technique officer Meltem Demirors imagine that the latest BTC value motion must be attributed to different causes, such as tax-day promoting.

In one other survey in mid-April, BofA reported that 75% {of professional} traders see Bitcoin as a bubble. Some crypto activists advised on Twitter that almost all of BofA fund managers don’t trade Bitcoin.

The BofA survey of fund managers, 99% of whom cannot trade bitcoin, suppose “lengthy bitcoin” is the most crowded trade. The final time they did so was in January. It doubled 3 months later.

— zerohedge (@zerohedge) Could 18, 2021

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