Bitcoin (BTC) Market Exposure Reduced to Lowest Level Since October 2020, Signaling a Strategic Shift Among Hedge Funds

The crypto landscape is witnessing a notable shift in strategy among hedge funds, with Bitcoin exposure at its lowest since October 2020.

Crypto hedge funds have dramatically scaled back their BTC market exposure, with the latest data indicating 0.37 over 20 trading days. This marks the lowest level of exposure since October 2020, according to ETC Group’s Head of Research André Dragosch.

The reduction in exposure highlights a cautious or bearish sentiment towards Bitcoin within the professional investment community, especially considering the asset’s current struggle to rally from lower price levels.

This cautious approach from hedge funds aligns with observed outflows from crypto exchange-traded products, suggesting a broader trend of reduced confidence among institutional investors.

However, it's worth noting that hedge funds tend to exhibit pro-cyclical behavior, investing in line with market trends. This could indicate a slow return to Bitcoin if the market rallies.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-market-exposure-reduced-lowest-level-october-signaling-strategic-shift-hedge-funds.html

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