Troubles for Bitcoin as Hedge Funds Bet Against Stock Market Winners

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Bitcoin faces the prospects of undergoing broader downside corrections as hedge funds rush to short stocks that surged impressively during the coronavirus pandemic. According to the Financial Times, some fund managers have increased their bets against the shares linked to technology, home gym equipment, grocery retail, and healthcare. Tim Campbell of Singapore-based hedge fund Longlead Capital Partners, for instance, called these stocks “the COVID over-earners.” The co-founder/chief investment officer noted that the current earnings trajectory of some pandemic winners appears unsustainable in the long-run. He predicted that they would return to the pre-coronavirus growth rate at some point. Bitcoin and its positive correlation with the S&P 500, the Dow Jones, and the Nasdaq Composite during the pandemic. Source: DXY on TradingView.com Analysts have already argued that estimating the actual value of stock market gainers seems complicated, especially amid an environment of ultra-low interest rates and massive central bank and government…

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