Crypto hedge funds have dramatically reduced their bitcoin exposure to levels not seen since October 2020, according to a report by The Block citing recent data from ETC Group.  In an X post, André Dragosch, Head of Research at ETC Group, wrote: “Crypto hedge funds have really thrown in the towel on bitcoin lately. They have reduced their BTC market exposure to only 0.37 over the past 20 trading days. Lowest since October 2020.”  Speaking to The Block, Dragosch noted that “the aggregate net long exposure by these crypto hedge funds relative to bitcoin as a benchmark has significantly declined”.  The reduction in hedge fund bitcoin exposure has occurred alongside continued outflows from crypto exchange-traded products. Dragosch described hedge fund positioning as “highly pro-cyclical", adding that “they might be forced back into the market” in the event of another rally. As of 06:11 ET, bitcoin was trading at $65,256, reflecting a slight decrease of about 0.2% over the past day, according to The Block's bitcoin price page. The overall cryptocurrency market capitalisation has however seen a modest increase of 0.5% in the past 24 hours, now standing at $2.5tn, according to Coingecko data.