Bank of America sends stark warning on global investor sentiment

As per the latest Bank of America Corp. survey of fund managers, overall sentiment among global investors is the most bearish since June 2025.

With investor sentiment hitting the lowest point in 11 months, inflation expectation is at an almost five-year high, Bloomberg reported on Apr. 14.

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Meanwhile, investors have slashed their expectations for economic growth by the most in four years, BofA strategists led by Michael Hartnett wrote in a note.

The war between the U.S. and Iran, which began one and a half months ago, has led to a sharp spike in oil prices, and there are concerns that rising power costs will weaken growth, with the central banks hiking interest rates to contain inflation.

Nonetheless, 70% of the survey participants still consider a recession unlikely, and a majority expect a “soft landing” for the global economy.

Hartnett said the survey findings are “contrarian positive for risk assets,” provided a ceasefire pushes the price of oil below $84 a barrel.

The BofA conducted the survey during Apr. 2-9 among 170 participants overseeing $511 billion in assets. 75% of the participants responded before the Apr. 8 ceasefire announcement.

The Fear & Greed Index has often dipped into the "Extreme Fear" territory and frequently into the "Fear" territory over the last year, as per CNN.

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Wall Street's bearish sentiment extends to crypto investors

What global investors are feeling isn't unique to Wall Street. The sentiment extends to the crypto market too.

As per CoinGlass, the Crypto Fear & Greed Index has spent roughly a quarter of the past year in the “Extreme Fear” and another quarter in the “Fear” zone.

The sentiment was "Neutral" only during a quarter of the past year, with "Greed" barely present during less than a quarter.

In fact, crypto investors never felt "Extreme Greed" over the past year.

The total crypto market capitalization, which hit $4.27 trillion in early October 2025, is standing at barely $2.60 trillion right now.

Bitcoin (BTC), the benchmark for crypto assets, similarly hit the all-time high (ATH) of $126,080 in early October last year. But it is currently trading 40% lower at $74,651.10.

There are several reasons for the ongoing crypto winter. 

The flash crash on Oct. 10 last year following President Donald Trump's China tariff threat, Wall Street's embrace of crypto, the global tariff war, and the recent conflict in West Asia with rising energy prices can be counted among the primary reasons.

At a score of 22, "Fear" is the dominant sentiment among crypto investors right now.

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