According to The Kobeissi Letter, hedge funds have shifted to a significantly bearish stance on the US Dollar, with net speculative exposure dropping to -20 points, marking the second-lowest level in two years (source: @KobeissiLetter, May 13, 2025). This sharp reversal from January’s +35 points—the most bullish in nine years—signals weakening confidence in the dollar. For crypto traders, this heightened bearish sentiment could fuel inflows into digital assets like Bitcoin and Ethereum as investors seek alternatives to the declining dollar. Historically, a weaker US Dollar has correlated with rising crypto prices, making this trend a key watchpoint for market participants.

According to The Kobeissi Letter, hedge funds have significantly shifted their positions, with net speculative exposure on the US Dollar dropping to -20 points, marking the second-lowest level in two years and a sharp reversal from the +35 points seen in January, which was the most bullish in nine years (source: The Kobeissi Letter, May 13, 2025). This bearish sentiment towards the US Dollar may drive increased capital flow into cryptocurrencies like Bitcoin and Ethereum, as traders seek alternative stores of value amid weakening dollar expectations. Crypto traders should monitor this trend closely, as historical correlations suggest a weaker US Dollar can boost crypto prices.