{"id":125392,"date":"2025-03-19T13:17:22","date_gmt":"2025-03-19T13:17:22","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125392"},"modified":"2025-03-19T13:17:22","modified_gmt":"2025-03-19T13:17:22","slug":"fund-managers-dump-us-stocks-at-record-pace-can-recession-fears-hurt-bitcoin","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125392","title":{"rendered":"Fund managers dump US stocks at record pace \u2014\u00a0Can recession fears hurt Bitcoin?"},"content":{"rendered":"

Source: Cointelegraph.com NewsBitcoin\u2019s (BTC) price action has closely mirrored that of the US equity market in recent years, particularly the tech-heavy Nasdaq and the benchmark S&P 500.
\nNow, as fund managers stage a historic exodus from US stocks, the question arises: could Bitcoin be the next casualty?
\nFund managers dump US stocks at record monthly pace
\nInvestors slashed their exposure to US equities by the most on record by 40-percentage-points between February and March, according to Bank of America\u2019s latest survey.
\nThis is the sharpest monthly decline since the bank began tracking the data in 1994. The shift, dubbed a \u201cbull crash,\u201d reflects dwindling faith in US economic outperformance and rising fears of a global downturn.
\nWith a net 69% of surveyed managers declaring the peak of \u201cUS exceptionalism,\u201d the data signals a seismic pivot that could ripple into risk assets like Bitcoin, especially given their persistent 52-week positive correlation over the years.
\nBitcoin and S&P 500 index 52-week correlation coefficient chart. Source: TradingViewMore downside risks for Bitcoin and, in turn, the broader crypto market arise from investors\u2019 rising cash allocations.
\nBofA\u2019s March survey finds that cash levels, a classic flight-to-safety signal, jumped to 4.1% from February\u2019s 3.5%, the lowest since 2010.
\nBofA Global Fund Manager March survey results. Source: BofA Research Adding to the unease, 55% of managers flagged \u201cTrade war triggers global recession\u201d as the top tail risk, up from 39% in February, while 19% worried about inflation forcing Fed rate hikes\u2014both scenarios that could chill enthusiasm for risky assets like Bitcoin.
\nConversely, the survey\u2019s most crowded trades list still includes \u201cLong crypto\u201d at 9%, coinciding with the establishment of the Strategic Bitcoin Reserve in the US.
\nMeanwhile, 68% of managers expect Fed rate cuts in 2025, up from 51% last month.
\nRelated: \u2018We are worried about a recession,\u2019 but there\u2019s a silver lining \u2014 Cathie Wood
\nLower rates have previously coincided with Bitcoin and the broader crypto market gains, something bettors on Polymarket believe is 100% certain to happen before May.
\nBitcoin price hangs by a thread
\nBitcoin\u2019s price has declined by over 25% two months after establishing a record high of under $110,000 \u2014 a dropdown many consider a bull market correction, suggesting that the cryptocurrency may recover in the coming months.
\n\u201cHistorically, Bitcoin experiences these types of corrections during long-term rallies, and there\u2019s no reason to believe this time is different,\u201d Derive founder Nick Forster told Cointelegraph, adding however that the cryptocurrency\u2019s next six months depend on how traditional markets (stocks) perform.
\nTechnically, as of March 19, Bitcoin was holding above its 50-week exponential moving average (50-week EMA; the red wave) at $77,250.
\nBTC\/USD weekly price chart. Source: TradingViewHistorically, BTC price returns to the 50-week EMA after undergoing strong rallies. The cryptocurrency\u2019s decisive break below the wave support has signaled a bear market in the past, namely the 2018 and 2022 correction cycles.
\nSource: Milkybull CryptoA clear breakdown below the wave support could have BTC\u2019s bears eye the 200-week EMA (the blue wave) below $50,000, echoing the downside sentiment discussed in the BofA survey.
\nConversely, holding above the 50-week EMA has led prices to new sessional highs, akin to what the market witnessed in 2024. If Bitcoin recovers from the said wave support, its likelihood of testing the $100,000 psychological resistance level is high.
\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsBitcoin\u2019s (BTC) price action has closely mirrored that of the US equity market in recent years, particularly the tech-heavy Nasdaq and the benchmark S&P 500. Now, as fund… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125392"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125392"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125392\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125392"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}