BofA Survey: Dollar Short Positions Drop to Lowest Level Since 2012, Bitcoin Shows Unusual Positive Correlation with Dollar

A Bank of America (BofA) survey in February showed that investors' bearish positions on the dollar have fallen to the lowest level since 2012, with dollar allocations at a historically low level.

Traditionally, a weaker dollar is usually favorable for risk assets like Bitcoin, but the report noted that since the beginning of 2025, Bitcoin has shown an unusual positive correlation with the dollar index, with a 90-day correlation coefficient rising to 0.6 at one point. Analysts believe that if this correlation continues, further declines in the dollar may not be beneficial for Bitcoin and could instead put pressure on it; conversely, if the dollar rebounds due to short covering, Bitcoin may rise accordingly, and market volatility could significantly increase.