I noticed an interesting thing in BofA’s latest survey — bearish bets on the dollar are now at their highest in more than ten years. This is a fairly serious signal for the markets, especially for crypto assets.

When the dollar index weakens and investors are placing bets against it en masse, it usually means they’re looking for alternatives. Bitcoin and other crypto assets often do well in such periods because they’re viewed as a hedge against currency weakness.

So what it comes down to: if the dollar index continues to fall against the backdrop of this level of bearish positioning, it could create favorable conditions for crypto. Of course, that’s far from the only factor — geopolitics, ФРС monetary policy, and market risk appetite all play a role.

In any case, this is data worth paying attention to. When such major financial institutions see such extreme positions on the dollar, it usually precedes significant market moves.