Regardless of the continued sideways pattern within the cryptocurrency markets, Bitcoin (BTC) nonetheless stays a crowded commerce. In keeping with
Regardless of the continued sideways pattern within the cryptocurrency markets, Bitcoin (BTC) nonetheless stays a crowded commerce. In keeping with a brand new survey from Financial institution of America, this might point out that the present bull cycle’s market high remains to be to come back.
Financial institution of America’s most up-to-date fund supervisor ballot means that the “lengthy Bitcoin” wager is now essentially the most crowded commerce throughout all markets, with practically 45% of respondents indicating it forward of different trades like “lengthy tech,” Bloomberg reported Tuesday. The brand new BofA survey captured responses from 194 fund managers with $592 billion value of property underneath administration.
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 essentially the most crowded commerce 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 essentially the most crowded commerce 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 most recent BofA survey could add some optimism to cryptocurrency markets, that are presently experiencing blended alerts after a serious market pullback. The ecosystem shed tons of of billions of {dollars} after Tesla CEO Elon Musk introduced the suspension of BTC funds for automotive purchases as a result of environmental issues. He additionally hinted at dumping BTC from Tesla’s steadiness sheet within the second quarter of 2021. Nevertheless, some crypto gamers like CoinShares chief technique officer Meltem Demirors imagine that the most recent BTC value motion must be attributed to different causes, akin to tax-day promoting.
In one other survey in mid-April, BofA reported that 75% {of professional} buyers see Bitcoin as a bubble. Some crypto activists advised on Twitter that almost all of BofA fund managers don’t commerce Bitcoin.
The BofA survey of fund managers, 99% of whom cannot commerce bitcoin, assume “lengthy bitcoin” is essentially the most crowded commerce. The final time they did so was in January. It doubled three months later.
— zerohedge (@zerohedge) Could 18, 2021