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

Despite the continuing sideways pattern in the cryptocurrency markets, Bitcoin (BTC) nonetheless stays a crowded trade. According to a brand new survey from Bank of America, this might point out that the present bull cycle’s market high continues to be to come back.

Bank of America’s most current fund supervisor ballot means that the “long Bitcoin” guess is now the most crowded trade throughout all markets, with practically 45% of respondents indicating it forward of different trades like “long tech,” Bloomberg reported Tuesday. The new BofA survey captured responses from 194 fund managers with $592 billion value of property beneath administration.

BofA Global Fund Manager Survey. Source: Bloomberg

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

Long Bitcoin was additionally chosen as the most crowded trade in Bank of America Merrill Lynch’s world fund supervisor survey again in September 2017. At 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 might add some optimism to cryptocurrency markets, that are presently experiencing blended alerts after a serious market pullback. The ecosystem shed a whole lot of billions of {dollars} after Tesla CEO Elon Musk introduced the suspension of BTC payments for car purchases as a result of environmental considerations. He additionally hinted at dumping BTC from Tesla’s balance sheet in the second quarter of 2021. However, some crypto gamers like CoinShares chief technique officer Meltem Demirors believe that the latest BTC value motion ought to 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.