Bitcoin ETF outflows are turning rising Treasury yields into a direct test for BTC price after Bank of America’s May Global Fund Manager Survey showed professional investors cut bond allocation to a net 44% underweight, the deepest positioning since June 2022, down from 33% underweight in April. $BTC
At the same time, managers pushed global equity exposure to a net 50% overweight from 13% in April, while cash fell to 3.9% from 4.3%. Fund managers are rotating into risk while rejecting duration, doing so at the fastest pace in nearly four years.
For Bitcoin, that combination creates a problem the asset cannot ignore, as 40% of surveyed managers named second-wave inflation as the biggest tail risk, and 18% named a disorderly rise in bond yields.
