BofA survey: US dollar short positions fall to lowest level since 2012, bitcoin shows unusual positive correlation with the dollar

BlockBeats News, February 17, Bank of America (BofA) February survey shows that investors' short positions on the US dollar have fallen to their lowest level since 2012, with dollar allocation at a historically low level. Traditionally, a weaker dollar is usually favorable for risk assets such as bitcoin, but the report points out that since the beginning of 2025, bitcoin and the US Dollar Index have shown an unusually strong positive correlation, with the 90-day correlation coefficient once rising to 0.60.

Analysts believe that if this correlation continues, a further decline in the dollar may not benefit bitcoin and could even put pressure on it; conversely, if the dollar rebounds due to short covering, bitcoin may rise accordingly, and market volatility could increase significantly. (CoinDesk)