Long bitcoin, short dollar among most crowded trades, according to Bank of America survey

Bitcoin • December 15, 2020, 11:20AM EST
UPDATED: December 15, 2020, 11:38AM EST
The Block

Long bitcoin, short the dollar?

Those two trades have been deemed among the most crowded by fund managers surveyed this month by Bank of America/BofA Securities.

As part of the firm's Global Fund Manager Survey, which goes out every month, "long bitcoin" is considered the third-most crowded trade among those surveyed. Meanwhile,  participants in the survey found "short US dollar" to be the second-most crowded trade and "long tech" as the most crowded trade.

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The US dollar has been getting clobbered, trading at more than two-year lows.. Meanwhile, bitcoin is up more than 20% over the last month. Tech stocks have been enjoying a nice run as well, fueled by new public market debuts like Airbnb. The tech-heavy Nasdaq Composite index is up more than 5% over the past month. 

FMS investors, according to the survey, think that run will continue, with optimism on risk-on assets including stocks hitting its highest level since 2011. 

About Author

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].