Crypto faces risk as dollar net longs hit $27.8B

Speculative traders have built their largest net long position on the U.S. dollar since February 2025. CFTC data as of June 9 showed net longs at $27.8 billion, extending a streak of weekly increases to 13.

The shift is stark. Before the Middle East conflict escalated in late February, traders held roughly $22 billion in short dollar positions. The swing from $22 billion short to $27.8 billion long represents a near $50 billion reversal in sentiment.

The Bloomberg Dollar Spot Index has gained about 1.6% since the conflict began.

Bank of America FX strategist Alex Cohen said fundamentals continue to support the greenback. Geopolitical instability and strong U.S. economic data underpin demand, he noted, and the bullish positioning could persist as long as those conditions hold.

The dollar rally pressures crypto. Bitcoin and other digital assets have historically moved inversely to the dollar. When the DXY rises, crypto tends to fall. The current dollar strength comes with rising oil prices, which feed inflation expectations and encourage the Federal Reserve to keep rates higher. Higher real yields on dollar assets reduce the relative appeal of non-yielding assets like bitcoin.

Leveraged funds also hold the most bearish yen positions since 2017, a sign of broad dollar demand.

The CFTC data on June 9 marked the largest net long dollar position since February 2025. The next release will show whether the trend continues.