Bitcoin Turns into Most-Crowded Commerce After Passing ‘Lengthy Tech’: Financial institution of America Survey
According to Bank of America’s January survey of fund managers, “Long Bitcoin” – a bullish bet on the top cryptocurrency – is the busiest trade in financial markets today.
The study, published Tuesday by Reuters, is evidence of Bitcoin’s growing popularity as a fixed asset. The leading cryptocurrency by market value, widely touted as digital gold and an inflation hedge, has grown by over 230% in the past three months due to institutional demand. Prices hit record highs above $ 41,900 earlier this month.
According to the survey, Bitcoin has dethroned “long tech” – bullish bets on big tech companies – as the busiest trade, the one that sees the greatest inflow of capital. The news is for the first time since October that tech has long been ousted from the top spot.
Betting against the US dollar (“Short USD”) is now the third most popular trade.
The struggling US dollar has picked up speed in the past few days and has seen US Treasury bond yields spike. The dollar index, which tracks the value of the greenback, is currently at 90.50, up 1.4% from its multi-year low of 89.21 on Jan. 6. The slight rebound may have helped slow Bitcoin’s bull run.
However, other details in the survey could spell an imminent boost for cryptocurrency in its role as an inflation hedge.
“Inflation expectations at an all-time high: record net 92% of investors in the BofA Fund Manager survey expect higher inflation in the next 12 months,” tweeted macro analyst Holger Zschaepitz.