According to The Kobeissi Letter, hedge funds’ long/short ratio on Magnificent 7 stocks has dropped to approximately 2.5x, marking the lowest level on record. This bearish positioning contrasts with the 3.0x ratio seen at the end of the 2022 bear market, indicating a significant shift in institutional sentiment. For traders, this highlights increased caution among institutional investors toward leading tech stocks, which could impact price volatility and short-term momentum strategies. Source: The Kobeissi Letter (Twitter, May 2, 2025).

According to Eric Balchunas, since April 8, Bitcoin has delivered a strong +26% return, outperforming other major asset classes such as gold (+9%), US large-cap stocks (+14%), US small-cap stocks (+14%), Magnificent 7 tech stocks (+17%), international stocks (+16%), and US bonds (0%). The notable outperformance of Bitcoin, especially compared to traditional assets, highlights increased risk appetite and momentum in the cryptocurrency sector. Traders may interpret these returns as a signal of shifting capital flows and potential trend continuation, but the source notes the uncertainty around whether this is a bear market rally or a sustainable shift (Source: Eric Balchunas on Twitter, May 2, 2025).