Fund managers are betting at a record high! Cash allocations drop to historic lows—what does this mean for the crypto market?

【Crypto World】According to the latest data, the global professional fund managers’ sentiment index has just hit a new high since mid-2021. More importantly, their cash reserves have fallen to 3.3%—a historically low level.

How to interpret this shift in allocation? A net 42% of fund managers are overweight in stocks, marking the most aggressive stance since the end of last year. Commodities are also attracting attention. Sounds optimistic, right? The question is—such excessive optimism often signals the end of a rebound.

Market sentiment that is extremely bullish usually harbors opportunities for correction. If tech stocks turn downward, highly correlated crypto assets are likely to follow. But here’s a twist—if the stock market indeed experiences a significant pullback, the Federal Reserve’s rate cuts could accelerate. And the release of liquidity often signifies the eve of a new bull market for the crypto ecosystem.