Money Bitcoin is the 'most crowded' investment in the world right now

11:58  13 september  2017
11:58  13 september  2017 Source:   CNBC

Bitcoin price drops $200 after new ruling from Chinese regulators

  Bitcoin price drops $200 after new ruling from Chinese regulators The price of bitcoin fell sharply after Chinese regulators announced a ban on organizations from raising funds using initial coin offerings (ICOs). ICOs allow start-ups to raise investment by selling new cryptocurrencies, which are similar to bitcoin, in return for cash. However, the People's Bank of China says this practice, which has become popular around the world as well as in China, constitutes illegal fundraising. Despite bitcoin's price falling, some expect this move to be shortlived.

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Bitcoin is now considered the " most crowded trade," as measured by sentiment in the monthly Bank of America Merrill Lynch Fund Managers survey. The other two so-called crowded trades have done very well this year

A view of Bitcoin token. A split in the Bitcoin community is set to create a new incompatible version of the cryptocurrency.© Manuel Romano/NurPhoto via Getty Images A view of Bitcoin token. A split in the Bitcoin community is set to create a new incompatible version of the cryptocurrency. In a year that has seen digital currency prices go higher not by percentages but multiples, investors are starting to worry that things have gone a bit too far.

Bitcoin (BTC=-USS) is now considered the "most crowded trade," as measured by sentiment in the monthly global Bank of America Merrill Lynch Fund Managers survey. That means investors believe there are too many people on one side of the trade and it could be due for a reversal.

Bitcoin's price has surged about 330 percent this year, the beneficiary of a jump in interest for the cryptocurrency and a growing field of competitors, as well as a flight to alternative assets and, some fear, a speculative bubble.

Australia set for an explosion of Bitcoin ATMs

  Australia set for an explosion of Bitcoin ATMs A joint venture between two digital currency companies could see Bitcoin enter the mainstream.A joint venture between blockchain firm DigitalX and ATM provider Stargroup could see a "large-scale" rollout of machines that allow Australians to buy and sell Bitcoin.

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Bitcoin is the ' most crowded ' investment in the world right now . CNBC.com. Insurance stocks lead the market higher as Irma downgraded to Tropical Storm.

The Merrill survey is one of the most followed and respected on Wall Street. Conducted during the week ending Sept. 7th, more than 200 global fund managers with more than $600 billion under management were surveyed.

Of course, a crowded trade doesn't have to mean it's nearing an end.

In the BofA survey, bitcoin supplanted the Nasdaq (.IXIC) and the short dollar trade as the most crowded. Bitcoin got 26 percent of the vote, edging out the Nasdaq, with 22 percent and the bet against the greenback, which took 21 percent of the vote.

The other two so-called crowded trades have done very well this year, with the Nasdaq surging just shy of 20 percent and the dollar (.DXY) tumbling nearly 10 percent against a basket of its global competitors.

In addition to worries over the bitcoin trade, fund managers also are backing away from U.S. stocks. The collective allocation to domestic equities fell to a net 28 percent underweight, which is the highest level since November 2007, shortly after the market hit its pre-financial crisis highs.

Investors also are beginning to fret about global growth, even as economists are upgrading their expectations. Just 25 percent expect a stronger global picture over the next 12 months, down from 62 percent at the beginning of 2017.

Swiss shut down 'fake' E-Coin in latest cryptocurrency crackdown .
Switzerland's financial watchdog has closed down what it said was the provider of a fake cryptocurrency and is investigating around a dozen other possible fraud cases, in the latest clamp-down on the risks involving virtual money. The move by the FINMA watchdog comes on the heels of Chinese authorities' ordering Beijing-based cryptocurrency exchanges to stop trading and immediately notify users of their closure.Virtual currencies such as Bitcoin, which are issued and usually controlled by their developers and not backed by a central bank, are hailed by their supporters as a fast and efficient way of managing money.

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