Bitcoin overtakes tech as most crowded trade in Bank of America survey
Bank of America’s monthly survey revealed that the long position in Bitcoin is the most crowded trade as of January this year. This would be the first time that the leading asset has replaced ‘long tech’ from the first place. Additionally, short US dollar is the third most crowded trade according to the survey.
Trade fund managers that participated in the survey manage a total of over $500 billion in assets. Reports stated that 19% of these respondents stated that they are also taking more risks than normal.
Earlier this month, Bitcoin surged to $42,000 and faced a major pullback soon after the hike. Ever since then the asset has been trading above $30,000. Messari co-founder Dan McArdle found that Bitcoin outperformed everything over the last ten years. The digital asset saw 7,837,884% gain in the last decade. Given the asset’s growing popularity, which is also seeing increasing adoption, experts predict Bitcoin could continue appreciating and reach $100,000 by 2025.
In another similar study by Deutsche Bank, nearly half of those surveyed think that the asset is in a market bubble. About 56% of the respondents expect Bitcoin to lose half of its value this year. Additionally, a majority of respondents in the Deutsche Bank survey placed US tech stocks in first place on this bubble list.
Furthermore, BofA survey revealed that 92% of investors think the next year will bring higher inflation.
Earlier in 2017, respondents in BofA’s and Merrill Lynch’s global fund manager survey selected Long Bitcoin as the most crowded trade.