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Fund Managers See Bitcoin Outperforming in 2021 Despite Picking ‘Long BTC’ as the Most Crowded Trade: BoA Survey

Hedge fund managers yet again think that “long Bitcoin” is the most crowded trade.

They must not have looked at the crypto market then, which means they might not even be involved meaning these fund managers think everyone is long on Bitcoin when no one really is.

Extending its losses from last week, Bitcoin crashed to $36,200, representing a 44.3% drawdown.

Still, the latest Bank of America fund manager survey, which took place between May 7 and 13 and polled 2216 participants, including 194 fund managers, with $625 billion worth of AUM, picked “Long Bitcoin” as the most crowded trade at 27%.

Prior “peaks” in crowded trades such as tech in Sept. 2018 and Sept. 2020, US Treasuries in March 2020, and US dollar in Jan. 2017 and Feb. 15 had been associated with relative tops, noted the report.

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This isn’t even the first time the fund managers have put the cryptocurrency at the top of the list. Back in January as well, “Long Bitcoin” was at the peak right before exploding to hit a new all-time high of $65,000. Before that, it topped the charts in 2017. Matt Maley, chief market strategist for Miller Tabak + Co. said,

“When an asset becomes the most crowded trade in the BofA survey, it has frequently signaled a near-term pullback in the past.”

“When you combine this with the news out of China, it’s not a surprise that Bitcoin is seeing some more weakness.”

Bitcoin has been ranked as the most crowded trade well ahead of technology stocks, ESG, thanks to the ongoing trend toward environmental, social, corporate governance, cyclical stocks, and short U.S. Treasurys.

Still, about 10% of fund managers said they think bitcoin will outperform in 2021.

Bitcoin/USD BTCUSD

35,956.7109
-$5,771.05
-16.05%

Volume 99.11 b
Change -$5,771.05

Open$35,956.7109
Circulating 18.71 m
Market Cap 672.88 b

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The post Fund Managers See Bitcoin Outperforming in 2021 Despite Picking ‘Long BTC’ as the Most Crowded Trade: BoA Survey first appeared on BitcoinExchangeGuide.

Source: Fund Managers See Bitcoin Outperforming in 2021 Despite Picking ‘Long BTC’ as the Most Crowded Trade: BoA Survey

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