UBS just downgraded U.S. stocks. The reasons why should have every bitcoin holder paying attention.

The dollar is the central concern. UBS forecasts the euro climbing to $1.22 by end of Q1 and sees "asymmetric structural downside risks" to the greenback.

Historically, when the dollar's trade-weighted index falls 10%, U.S. equities underperform by roughly 4%.

Foreign markets are trouncing the U.S. this year. MSCI World ex-US is up 8%. Japan's Nikkei is up 17%. Stoxx Europe 600 up 7%. The S&P 500? Flat.

Valuations are stretched. The sector-adjusted P/E ratio for U.S. stocks is 35% above international peers, versus an average premium of 4% since 2010. The buyback yield that once set America apart is now on par with global peers.

Layer in tariff shifts, proposed credit card rate caps, drug pricing scrutiny, and potential limits on defense company buybacks, and the picture gets hard to ignore.

Capital is rotating out of U.S. equities. A weakening dollar historically sends investors looking for harder assets. Bitcoin has been that trade before.
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