Bank of America's February survey reveals that bearish positions on the US dollar have fallen to their lowest level since 2012, with overall allocations historically underweight. Since early 2025, Bitcoin has exhibited a strong positive correlation of 0.60 with the US Dollar Index over the past 90 days, an unusual trend given traditional negative correlations. Analysts warn that further weakness in the dollar may exert downward pressure on Bitcoin, while a dollar rebound driven by short covering could trigger Bitcoin price gains and heightened volatility.

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