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- Bank of America’s recent fund manager survey reported that the “Long Bitcoin” has replaced “long tech” and emerged as the most crowded trade
- The results showed that 36% of respondents recognised a strong Bitcoin bet as the biggest crowded trade exceeding the long tech
- Bitcoin is currently displaying signs of consolidation over the $36,000 mark
Bank of America’s recent fund manager survey reported that the “Long Bitcoin” has replaced “long tech” with a flip. It has successfully emerged as the most crowded trade.
FMS’s survey of 2017
In an alternate episode of the 2017 bull market; FMS, a major United States bank fund manager survey, hinted at the significant value of Bitcoin. It put Bitcoin at the peak of affirmative investor sentiment.
January 21 survey of Bank of America
According to Reuters, a January 21 survey from Bank of America recently announced its conclusions. The results showed that 36% of respondents recognised a strong Bitcoin bet as the biggest crowded trade overtaking the long tech.
The January report will then remain extremely significant in its conclusions. For the first time, the ‘long tech’ has declined from the top position in the fund manager survey of BofA’s since Oct. 2019. Besides, the result remarks a gradual increment in positive investor sentiment of Bitcoin. The reason being that it was in the third position back in 2020.
The December 2020 edition exhibited a positive appetite for risk assets. Most of the asset managers were dropping cash for the first time since 2013.
However, tech stocks are presently suffering from important struggles in the market. The major reason behind them is the depletion in the points of the Nasdaq Composite and the Dow Jones. In the second week of January, their points have diminished by 150 and 90 bases respectively.
On the other hand, Merrill Lynch’s global fund manager survey also tapped long Bitcoin as the most crowded trade back in 2017. In another survey as reported by Reuters, this one from Deutsche Bank, respondents distinguished Bitcoin as surviving in a bubble. Per the report, the majority of the respondents predicted a 50% price decrease for Bitcoin by the end of 2021.
Bitcoin’s current status
Bitcoin is currently displaying signs of consolidation over the $36,000 mark. This could be a stimulant for an alternative attempt at its record high above $40,000. JPMorgan analysts commented on the same that BTC needs to retake $40,000 or put another 30% correction at risk.
At the time of writing, Bitcoin is already up more than 26% year-to-date. This value is despite it being about $4,000 shy of its ATH price accomplished back on January 8.
It will be interesting to see how the crypto asset market responds to the results of the respective survey.
