Bitcoin's price has been closely tied to the US equity market, particularly the Nasdaq and S&P 500. With fund managers recording a historic exodus from US stocks, there are concerns about Bitcoin becoming a casualty amid the market volatility. According to Bank of America's March survey, investors reduced their US equity exposure by 40 percentage points, signaling fears of a global downturn. This decline has led to increased cash allocations, reflecting a flight to safety and raising concerns for risk assets like Bitcoin. Despite these risks, 9% of managers still favor long positions in crypto, and many expect rate cuts from the Federal Reserve in 2025, which historically aligns with Bitcoin and broader crypto market gains. Currently, Bitcoin is retaining support above its 50-week moving average, but a breakdown could signify significant downside, echoing previous bear markets. The outcome for Bitcoin in the coming months is closely linked to the performance of traditional markets.

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