“Long bitcoin” is once again the most "crowded" trade in financial markets, according to a new survey by Bank of America.
- 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.
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