Bank of America's latest Fund Manager Survey reveals investor cash allocations at a historic low of 3.3%, signaling extreme bullishness. Exposure to equities and commodities has surged to levels not seen since early 2022. This sentiment extreme could foreshadow market reversals with implications for bitcoin and cryptocurrencies.
The Bank of America's Global Fund Manager Survey, released on Tuesday, December 16, 2025, highlights a surge in investor optimism. Cash levels among professional investors dropped to 3.3%, the lowest in the survey's history, indicating a strong lean into risk assets. The survey polls around 200 fund managers managing over $500 billion in assets.
Equity exposure stands at a net 42% overweight, the highest since December 2024. Commodities, including gold, silver, and copper near record highs, show a net 18% overweight, the strongest since September 2022. Overall sentiment reached its highest point since July 2021, driven by expectations of economic resilience.
Fifty-seven percent of respondents predict a soft landing by 2026, while only 3% anticipate a hard landing—the lowest such figure since mid-2021. Global growth and profit outlooks are at their peak since August 2021, and liquidity conditions rank as the third-best in the past 17 years.
This frothy sentiment in traditional markets raises concerns for bitcoin, currently trading around $87,500, which correlates with the Nasdaq. A sharp pullback in stocks could lead to further crypto losses. However, such a decline might prompt accelerated Federal Reserve rate cuts beyond the currently projected single cut for 2026, potentially reigniting a crypto bull market by boosting liquidity.
