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- Bitcoin has slipped to third place among the busiest markets
- In July, the surveyed fund managers were substantially less optimistic about growth, earnings, and inflation than they had been earlier in the year
- Long bitcoin was the most popular trade in May, followed by long tech stocks and long ESG
According to the latest global fund manager poll conducted by Bank of America, long bitcoin is now the third most crowded trade. Long tech stocks is presently the most popular trade, followed by long ESG. Long bitcoin has dropped to third place among the most crowded trades, according to a Bank of America global fund manager poll released Tuesday. The Global Fund Manager Survey is a monthly survey published by Bank of America Securities that polls the opinions of roughly 200 institutional, mutual, and hedge fund managers from across the world.
Bitcoin trading at all time high
A record 83 percent of investors predicted a steeper yield curve, higher than after the 2008 Lehman Brothers collapse, the 2013 U.S. Federal Reserve’s Taper Tantrum, or the 2016 U.S. election. Higher bond yield expectations were at or near all-time highs. Problems with vaccine rollout (30 percent), the Fed lowering its asset purchases (29 percent), and a Wall Street bubble were seen as the biggest tail risks to the economy (18 percent ). On Monday, Bitcoin was hovering at $36,000, below a level that JPMorgan Chase & Co. strategists regard as an inflection point for the digital currency.
A team led by Nikolaos Panigirtzoglou believes the cryptocurrency would be harmed by an exodus of trend-following investors unless it can break out above $40,000 shortly. They said that the demand pattern for Bitcoin futures and the $22.9 billion Grayscale Bitcoin Trust will aid in determining the prognosis. For such a breakout to occur, the flow into the Grayscale Bitcoin Trust would need to maintain its $100 million per day pace over the coming days and weeks, the analysts wrote in a note on Friday.
Bitcoin was in the top 3 traded stocks according to Bank of America
Long tech stocks are now the most popular trade, followed by long ESG and long bitcoin. Long commodities, which was the most crowded trade last month, has dropped to fourth place. According to the Bank of America study, fund managers were substantially less optimistic about growth, earnings, and inflation in July than they were earlier in the year. Overall, 74% of fund managers believe growth and inflation will continue to be above trend.
Long bitcoin was the most popular trade in May, followed by long tech stocks and long ESG. Long commodities surpassed long bitcoin as the most crowded trade in June, putting cryptocurrency in second place. At the time, long tech stocks were ranked third, and long ESG was ranked fourth.
Meanwhile, according to an internal memo from Bank of America, the bank has formed a cryptocurrency research team. Because of our strong industry research analysis, market-leading global payments platform, and blockchain knowledge, we are well positioned to deliver thought leadership, the bank stated last week. In a recent analysis, Bank of America stated that digital money has the potential to stimulate economic growth in poor countries.
Bitcoin was in a similar situation in late November, according to JPMorgan strategists, with $20,000 being the test. They argued that institutional investment into the Grayscale trust helped extend the rally of the world’s largest cryptocurrency.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
