“Long Bitcoin” Overtakes “Long Tech” As Most Crowded US Trade

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Last Updated on 20 January 2021 by CryptoTips.eu

Jeroen Kok

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Tech no longer reigns supreme in the shadowy back streets of Wall Street where secrets are shared and insider tips can make you a fortune. For the first time since October 2019, the most crowded trade in the US (aka the most popular one for fund managers) is no longer long Tech or short dollar. According to CNBC, Tech spent more than a year in the top spot.

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Bank of America

Every month, Bank of America sends out a survey to fund managers asking them for their choices of most popular trades for the moment. During most of 2020, the top spot was taken by Tech as companies like Netflix and Amazon saw their turnovers skyrocket due to the pandemic.

Now that digital payments look like they are here to stay and Bitcoin hit $40,000 earlier this month, the crypto once invented by the mysterious Satoshi Nakamoto has finally grabbed the top spot.

The current price of Bitcoin is $34,600 and it has dropped almost 7% in the past 24 hours.

However, this sentiment is not shared on both sides of the Atlantic. In Europe, it is mostly the monthly survey by Deutsche Bank that is seen as the trustworthy one. In the old continent, many claimed that Bitcoin was entering bubble territory with, according to Reuters, no less than:

56% of the participants saying the cryptocurrency was more likely to halve in value in the next 12 months.

Looks like the mood in the US is risk-on now that Biden is the incoming US President, whilst Europeans are going risk-off now that a possible third corona wave is set to wreak havoc.

US Dollar

Back in the summer of 2020, the most popular trades in the US were already Bitcoin and Tesla. By now that has become Bitcoin and Tech. The third most popular trade at this moment is to short the US dollar.