A bullish guess on expertise shares, or “lengthy tech,” has reclaimed the title of most-crowded commerce within the monetary markets, in keeping with Financial institution of America’s (BofA) February survey of fund managers.
Bitcoin noticed a surge in capital influx final month, with costs reaching then-record highs above $40,000 on Jan. 8 – a 300% acquire from early October lows close to $10,000. Earlier than that, betting in favor of expertise shares was essentially the most most well-liked commerce all through the ultimate quarter of 2020.
Whereas the highest cryptocurrency has printed contemporary lifetime highs close to $50,000 in February on a wave of institutional adoption, capital inflows have cooled.
Reflecting a usually conservative view, solely 5% of worldwide fund managers count on bitcoin to outperform different asset lessons in 2021 versus almost 60% for rising market equities.
Bitcoin, nevertheless, is predicted to outshine gold. The highest cryptocurrency rose 300% in 2020, outperforming each main asset class, and has gained 70% this yr.
To this point this yr, bitcoin is up 68%, whereas S&P500 shares are up 4.7% and gold is down 3.8%.
The BofA analysis reveals betting towards the U.S. greenback (“brief greenback”) remains to be the third most-crowded commerce. In the meantime, money ranges in funding portfolios have plunged to three.8% – the bottom degree since 2013. In response to the fund supervisor survey, when money ranges drop under the 4% mark, it signifies over-optimism and triggers a contrarian promote sign.