💵 Dollar Bears at Extreme Levels — What It Means for $BTC
Bank of America’s latest survey shows investor positioning in the U.S. dollar is at its most bearish since 2012, with net exposure at a record underweight. Historically, a weaker dollar has been a bullish tailwind for bitcoin, making BTC cheaper and supporting risk assets.
However, since early 2025, BTC has shown a positive correlation with the dollar (90-day correlation at 0.60). This means a further dollar slide could actually pressure BTC, while a sharp dollar rebound or short squeeze could push bitcoin higher.
Extreme dollar bearishness raises the risk of volatility—any unexpected move could trigger frantic short covering, sending BTC and other USD pairs sharply higher. At press time, the dollar index sits at 97.13, while BTC trades near $68,150.