Bank of America: Long Bitcoin and Short the Dollar Among Top Market Themes

A short position in the dollar and a long position in bitcoin became the second and third most popular topics in the Bank of America/BofA Securities survey, conducted among 217 asset managers overseeing a total of $535 billion.

The most crowded trades according to the Bank of America Global Fund Manager Survey. Tech still leads the market. The Nasdaq Composite is up 39.84% YTD. #Bitcoin is the third most crowded trade after a swell-up in December mostly due to increased institutional uptake in the west pic.twitter.com/d8uaF4XUtY

— Jonathan Dury (@dury_x) December 15, 2020

The survey was conducted from December 4 to 10. Shortly before, bitcoin hit a new all-time high.

Thirty-three of the 217 participants said the most crowded positioning was long bets in the first cryptocurrency; 37 managers share the view for dollar shorts. About half identified long positions in tech stocks as the most crowded.

In 2021, managers expect gains in emerging-market equities, a continued rise in the S&P 500, and a recovery in oil prices. Fewer than 5% of respondents see bitcoin as the primary driver of growth in the coming year.

Good news — less than 5% of global fund managers have heard of Bitcoin. We’re still early

(Bank of America survey Dec 15, 2020) pic.twitter.com/txNjw7zZtD

— Mira Christanto (@asiahodl) December 15, 2020

Analysts at Bloomberg say that bitcoin’s price range in 2021 could be $10 000-$50 000. They believe that the current consolidation could last for several months, but the rally will continue thereafter.

Last week, Glassnode analysts pointed to six metrics that are well below the levels recorded when bitcoin reached its 2017 high. They say this points to the potential for bitcoin to rise with targets above $200,000.

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