Wall Street is actively short-selling the US dollar

This situation has never happened before.
Investors are currently the most bearish on the US dollar since 2012.
When Wall Street leans strongly in one direction, consequences follow.
This is exactly what will happen next:
The issue lies in positioning.
Large funds are betting on:
→ A weaker dollar
→ Looser financial conditions
→ Higher risk asset prices
Historically, this trade makes sense.
A declining dollar usually means:
1⃣ Liquidity expansion
2⃣ Increased global risk appetite
3⃣ Bitcoin and cryptocurrencies surge
That’s the old script.
But everything has changed.
In the past year, Bitcoin has not acted as an inflation hedge.
It doesn’t function as digital gold.
It has traded in tandem with the dollar, not against it.
That’s the danger.
If this correlation holds:
→ Dollar decline ≠ Bitcoin rise
→ Weak dollar can impact risk assets
→ Bitcoin gets dragged down instead of lifted up
This is not normal behavior.
Look at past turning points:
1⃣ 2011–2012
Extreme USD pessimism.
Many short positions.
A sharp reversal in the dollar.
2⃣ 2017–2018
Weak dollar fueled the crypto boom.
Tightening begins.
Bitcoin crashes 80%.
3⃣ 2020–2021
Dollar crashes.
Liquidity explodes.
Everything bubbles.
Now compare that to today.
Record USD decline.
Persistent inflation.
Global liquidity tightening.
Overvalued risk assets.
This is a fragile combination.
If the dollar suddenly strengthens:
→ Short positions are forced to cover
→ Financial conditions tighten further
→ Risk assets reprice quickly
If the dollar weakens and Bitcoin drops:
→ Hedging scenarios break down
→ Forced selling increases
→ Volatility spikes
Both outcomes are unstable.
There is no easy path here.
This is the picture of positioning at the end of a cycle when everyone is on the same side.
Correlations behave strangely, and small fluctuations trigger big market reactions.
The danger isn’t what people expect.
It’s what no one is prepared for.
Most traders are betting on history repeating.
Markets often punish that assumption.
Ignore it if you want, but don’t say the signs aren’t there.
I’ve predicted market tops and bottoms for over a decade, and I’ll do it again in 2026.
Stay tuned and turn on notifications before it’s too late.