Bitcoin overtakes ‘long tech’ as most crowded trade

Marco Green
January 20, 2021

For the first time considering the fact that October, a lengthy placement on technology corporations was knocked off the leading place, as buyers claimed that extensive bitcoin was the most crowded trade.

In another survey reported by Reuters, this time from Deutsche Bank, respondents characterized Bitcoin as being in a bubble.

More generally, too, when asked specifically about the 12-month fate of bitcoin - which surged 300% previous year - and electric vehicle maker Tesla which soared almost 750% and is seen as emblematic of highly priced tech stocks, a majority of respondents said they were now more likely to halve than double in value.

A long position on bitcoin overtook "long tech" as the trade fund managers said was the most crowded in January, Bank of America's monthly fund manager survey showed on Tuesday.

The JPMorgan strategists said Bitcoin was in a similar position in late November, except with $20,000 as the test. Flows of institutional investment into the Grayscale trust helped the world's largest cryptocurrency extend its rally, they wrote. The expectation of higher bond yields was at or close to all-time highs.

In another throwback to the 2017 bull market, a major United States bank fund manager survey, or FMS, has put Bitcoin at the pinnacle of positive investor sentiment. The fund managers surveyed by BofA manage a total of more than $500 billion in assets altogether.

The biggest potential tail risks that could unsettle markets in the BofA study were seen vaccine rollout problems (30%), if the Fed did taper its asset purchases (29%) and the Wall Street bubble bursting (18%). But at 15% underweight it remained pinned as the number one underweight region, BofA said.

Other reports by Click Lancashire

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