‘Long Bitcoin’ chosen as most crowded trade in latest BofA survey
BofA/Merrill Lynch released a new survey today, and it asked traders the question: “If your revenues were dependent upon being correct on the direction of the major US equities averages, which one would you bet on?”. With 68% of respondents betting on the S&P 500, clearly the most popular answer was a deceptively simple one: “the direction of the S&P”. However, if you dig deeper, there’s also a lot of love for a “bull market”, with the second most crowded trade being a long bet on the S&P 500.
In the latest edition of its Global Fundamentals survey, Bank of America Merrill Lynch asked roughly 275 investment professionals at global banks and other financial institutions about their outlook on various assets. One of the questions that the analysts asked was about the crowded trades that the survey participants were most worried about. The winner? The Bitcoin Investment Trust (GBTC).
Bitcoin’s price is riding high, but not everyone is cheering. A new survey from Bank of America has found that of the investors they’ve polled, the largest percentage of them think there’s a sizable chance that the cryptocurrency’s price will decline significantly in the next five years.
Despite the current sideways trend in cryptocurrency markets, bitcoin (BTC) remains a coveted currency. According to a new Bank of America study, this may indicate that the top of the current bull trend is yet to come. According to Bank of America’s latest survey of money managers, betting on long bitcoin is now the most popular trade in all markets, with nearly 45 percent of respondents prioritizing it over other trades as a long tech, Bloomberg reported Tuesday. The new BofA study included 194 fund managers with $592 billion in assets under management. BofA Global Fund Manager Survey. Source: Bloomberg In its commentary to the report, BofA notes that transactions classified as crowded have historically heralded the approach of a peak for their respective markets. Bitcoin was trading around $36,000 when a survey by BofA long ranked bitcoin as the most active trade in January. The price of bitcoin then skyrocketed, reaching a new high of over $50,000 in February and over $64,000 in mid-April. Long bitcoin was also chosen as the most active trade in Bank of America Merrill Lynch’s global survey of money managers in September 2017. At the time, bitcoin was trading around $4,000 and in December 2017 it passed the $20,000 mark for the first time in history. BofA’s latest research could bring optimism to cryptocurrency markets, which are currently experiencing mixed signals following a significant market decline. The ecosystem lost hundreds of billions of dollars after Tesla CEO Elon Musk announced the suspension of BTC payments for car purchases due to environmental concerns. He also hinted that BTC will be removed from Tesla’s balance sheet in the second quarter of 2021. However, some cryptocurrency players, such as CoinShares chief strategist Meltem Demirors, believe that the recent movement in the price of BTC should be attributed to other reasons, including. B. a liquidation on tax day. In another survey conducted in mid-April, BofA reported that 75% of professional investors think bitcoin is a bubble. Some crypto activists have claimed on Twitter that most BofA fund managers do not trade bitcoin. A BofA survey of fund managers, 99% of whom don’t know how to trade bitcoin, shows that long bitcoin is the most traded trade. The last time this happened was in January. After 3 months, it has doubled in volume. – zerohedge (@zerohedge) May 18, 2021A recent survey of the 100 largest US banks by Bloomberg, has shown that Bitcoin is now the most crowded trade in the market. The survey, which was conducted by Bank of America, found that 94% of all trades conducted in Bitcoin are now short trades, representing a significant increase from the 89% short positions that were in place at the start of the year. In contrast, precious metals and equities have the least crowded trades, with gold shorts making up 32% of the market and 14% of equity trades being short trades. Article Intro: In May of 2010, the US Department of Education began allowing students to apply for federal loans and grants using their social security number and a single form, called the Free Application for Federal Student Aid (. Read more about bitcoin price history and let us know what you think.
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