They noted the strong inverse correlation between the US Dollar Index and cryptocurrencies.

A stronger dollar often restrains risk assets, while a weaker dollar usually supports rallies across Bitcoin, Ethereum, and the broader market.

Recent data shows that hedge funds hold unusually large short positions against the dollar. This increases the risk of a reversal with massive pressure on crypto.

Analysts said that a strong rebound in the dollar would threaten the foundation of the bullish narrative that many Ethereum (ETH) holders expect to unfold into 2026.

The Dollar’s Most Crowded Bet Is the Wrong One

The top half is the broad dollar index. The bottom half is hedge fund positioning in the dollar, a simple read on whether the fast money is leaning long or short. When that lower line

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