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‘Long Bitcoin’ Is World’s Most 'Crowded' Trade: Bank of America Survey
A bullish bet on the cryptocurrency was also the most crowded trade in January.
Updated Sep 14, 2021, 12:57 p.m. Published May 18, 2021, 1:58 p.m.
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“Long bitcoin” is once again the most "crowded" trade in financial markets, according to a new survey by Bank of America.
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- The survey of 194 funds managers with $592 billion worth of assets under management overall found that a bullish bet on cryptocurrency is the most crowded trade in the world at the present time, Bloomberg reported Tuesday. A "crowded trade" refers to when a vast majority of traders make the same bet.
- “Long bitcoin” also topped Bank of America’s survey in January, before being pushed into second place the following month behind “long tech.”
- The survey notes that the designation as the most crowded trade has historically been associated with relative tops, such as for tech in September 2018 and September 2020 and the U.S. dollar in February 2015 and January 2017.
- But that hasn't been the case when bitcoin has been the most crowded. January was followed by still higher climbs for the world’s largest crypto in February.
See also: Bank of America Joins Paxos Network Eyeing Same-Day Stock Trade Settlement
Más para ti
Small investors are buying bitcoin. For a rally to succeed, the whales need to join in.
Small wallets have increased their BTC holdings by 2.5% since October's all-time high while large holders trimmed 0.8%, Santiment data shows.
Lo que debes saber:
- Bitcoin wallets holding less than 0.1 BTC have increased their share of supply to the highest since mid-2024 even as the price holds around the mid-$60,000s.
- Larger holders with 10 to 10,000 bitcoins — the whales and sharks that typically drive major moves — have reduced their positions since the October peak.
- The divergence supports choppy, fragile price action because retail demand alone cannot sustain rallies when big wallets are distributing into every recovery.
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