From being the third-most crowded trade in December, “long bitcoin” has quickly climbed the top spot, according to a survey by the Bank of America.
Trading above $35,000, Bitcoin continues to pass milestone after milestone as reports show that the cryptocurrency received the most capital inflow this month compared to tech stocks and traditional investments.
Long Bitcoin Wins Most Crowded Trade
A recent survey conducted by the Bank of America on fund managers with over $500 billion in AUM reveals that investors are bullish on Bitcoins price in the long term.
The study shows that “long bitcoin” dethroned “long tech” as the most crowded trade in January 2021.
Reuters reported Tuesday that this is the first time a long position on technology companies is losing the top spot since October. This is also the first time “long bitcoin” has ever ranked first in the financial markets.
The milestone is coming just three months after less than 5% of the participants in Novembers survey voted for “long bitcoin” as a preferred trade, with more than 65% of fund managers choosing “long tech.”
A previous survey conducted by BofA showed that “long bitcoin” climbed up to the top three preferred trades in December as fund managers named it as the “third-most crowded” trade.
Shorting USD
While investors are bullish on Bitcoin, traders are still losing faith in the US dollar as they continue to bet against it. The survey places “short USD” as the third most crowded trade for the month, just one spot below its previous position. It was the second-most crowded trade in December.
As reported earlier, one reason for the criticism against the US dollar is the FEDs money printing spree during the peak of the COVID-19 pandemic last year, which allegedly saw the creation of almost 20% of all existing USD.
Investors argue that the FEDs action is a recipe for inflation, with many economists predicting that the USD value would fall. To protect themselves against the supposed impending dollar doom, investors and institutions seeking to preserve their wealth chose Bitcoin, which has turned out to be a win for them so far.