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Global Fund Managers Show Record Bearishness on US Dollar

By: coincu news|2025/05/13 16:15:04
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Global fund managers, polled by Bank of America , reported the highest bearish sentiment on the US dollar since 2006. The survey conducted in May highlights the impact of U.S. trade policies. This sentiment signals potential shifts in investment strategy, with broader implications for global markets and risk asset allocations. Fund Manager Sentiment on US Dollar at 17-Year Low Bank of America’s recent survey indicates a dive in confidence among global fund managers regarding the US dollar, recording the highest bearish sentiment in almost 20 years. Managers have notably cut their dollar holdings , already down to levels last achieved in 2006, marking a critical shift. The survey shows a reduction in cash holdings, reflecting a slightly more robust market sentiment compared to April. The report shows profound changes in investor strategy , emphasizing political events like President Trump’s trade policies. These have led to a substantial movement towards risk-off assets , including gold , now deemed the most crowded trade. Investor sentiment remains low despite a slight improvement over the previous month, indicating potential further reductions in cash and dollar allocations. Bitcoin and Gold as Potential Hedge Amid Dollar Weakness Did you know? The last time bearish sentiment on the US dollar was this high, in 2006, major repositioning led to increased investments in alternative assets such as gold, signaling similar possible trends now. Bitcoin (BTC) experienced a minor dip of -1.71% over 24 hours, trading at $102,692.66. It boasts a market cap of $2.04 trillion, according to CoinMarketCap, dominating 61.93% of the market. Over 60 days, Bitcoin’s price has risen by 24.85%, reflecting strong quarterly gains, influenced by global financial trends. Coincu research suggests significant shifts could impact the regulatory landscape and digital asset appeal. The flow from US equities to asset classes like gold and Bitcoin reflects broader uncertainty in traditional markets, positioning these assets as potential hedges amid weakening investor confidence.

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