According to The Kobeissi Letter, hedge funds' long/short ratio on Magnificent 7 stocks—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—has dropped to its lowest point in five years, as reported by Goldman Sachs. This level is even lower than at the 2022 bear market bottom, indicating persistent caution among institutional investors. For crypto traders, this ongoing underweighting of major tech stocks signals reduced traditional equity inflows into risk assets, which could influence liquidity and sentiment in correlated crypto markets, especially for tokens with exposure to AI and tech narratives (Source: The Kobeissi Letter on Twitter, June 3, 2025).

According to The Kobeissi Letter, hedge funds have been aggressively selling US tech stocks for the first time in months. Last week, institutional investors reduced their tech stock exposure at the fastest pace since July 2024, with the 'Magnificent 7' exposure reaching a two-year low.