As global money flows shift towards riskier assets, Bitcoin price might be poised for a significant surge in the coming weeks. With liquidity returning to the markets, the conditions appear favourable for a potential rally. Andre Dragosch, Head of Research at Bitwise, believes the global money supply is set to reach new highs, creating an ideal scenario for Bitcoin price to rise.
Stock Markets Rise As US Dollar Drops
On Wednesday FTSE 100 and European stocks recovered from significant losses as the US dollar sank to a four-month low. This followed President Donald Trump’s warning on “a little disturbance” his tariffs could bring about The British pound, meantime, surged above $1.28 for the first time since December.
Bitcoin is growing because the US dollar is getting weaker. The important 104 level is nearing the US Dollar Index (DXY). This index shows how strong the dollar is against other currencies. BTC could see another rise if it falls below this level.
Bullish Sign That Bitcoin Will Rise?
Dragosch thinks that the amount of money in circulation around the world is about to hit a new high, which could help Bitcoin go up in value. He said that the DXY chart was “the most bullish chart you will see today,” which means that Bitcoin has a lot of room to go up.
Source: André Dragosch
But even though a new government is in charge, the US dollar hasn’t gotten much stronger. At the same time, trade tariffs are still making investors less confident, which makes risky assets like Bitcoin more appealing.
Big Bitcoin Rally Coming Soon
Colin Talks Crypto, a crypto analyst, is keeping an eye on the M2 money supply to see if there are any signs of a Bitcoin breakout. In the past, Bitcoin price has gone up when there is more money in the world, which has happened during bull runs.
Colin Talks Crypto told X followers this week, “The rally for stocks, bitcoin, and crypto is going to be epic.” He was sticking to what he said before.
He thinks that Bitcoin and other cryptocurrencies could soon get a much-needed boost after a time of high volatility.
White House Crypto Meeting Brings Big Change Ahead
Trump will host the first-ever White House Crypto Summit on March 7. Howard Lutnick, the secretary of commerce, has said that the event might confirm plans for a Strategic Bitcoin Reserve. If this happens, it would be a big change in how the US handles cryptocurrencies.
Rumors say that Congress may delay the reserve plan since it doesn’t have their support. But a lot of experts in the field are still confident. Anthony Pompliano, CEO of Professional Capital Management, wrote on Twitter, “The Strategic Bitcoin Reserve is coming.”
Bitwise’s Chief Investment Officer, Matt Hougan, also thinks the plan will go ahead. He thinks that Bitcoin will make up the whole reserve.
Will The US Make Bitcoin An Official Asset?
Kalshi’s prediction market data now shows that there is a 71% chance that the Bitcoin reserve will happen this year. This is the highest chance that has ever been recorded.
Bitcoin may be about to have its next big rally. Global liquidity is going up, institutional interest is going up, and the government may soon start to back the currency.
