Bitcoin could be gearing up for a significant rally as shifting global liquidity trends favor risk assets. With money flowing back into the financial markets, conditions are aligning for a potential surge. Andre Dragosch, Head of Research at Bitwise, suggests that the global money supply is set to reach new highs—creating the perfect setup for Bitcoin’s ascent.
Stock Markets Rebound as the US Dollar Weakens
Global stock markets have shown signs of recovery, with the FTSE 100 and European stocks rebounding from recent losses. A key driver behind this shift is the weakening US dollar, which recently hit a four-month low. The US Dollar Index (DXY) is hovering near the critical 104 level, and a break below this mark could further boost Bitcoin’s price momentum.
WATCH: This is the most bullish chart you will see today.
— André Dragosch, PhD | Bitcoin & Macro ⚡ (@Andre_Dragosch) March 5, 2025
If this trend continues like that, global money supply will soon reclaim new all-time highs.
You know what that means for BTC… pic.twitter.com/cIlkp3hlq9
President Donald Trump’s latest comments on trade tariffs have added to market uncertainty, weighing down the US dollar. Meanwhile, the British pound has surged past $1.28 for the first time since December, indicating broader shifts in currency dynamics that could benefit Bitcoin.
A Strong Bullish Signal for Bitcoin?
Dragosch believes the record-high global money supply is a strong bullish indicator for Bitcoin. He pointed to the declining DXY as “the most bullish chart you will see today,” suggesting that Bitcoin has substantial upside potential.
Despite changes in the US administration, the dollar has struggled to regain strength, making alternative assets like Bitcoin increasingly attractive. As inflation concerns persist and monetary policies evolve, Bitcoin could stand to gain as a hedge against fiat instability.
Institutional Optimism and a Potential White House Shift
Crypto analyst Colin Talks Crypto remains optimistic, watching the M2 money supply for signs of an imminent Bitcoin breakout. Historically, Bitcoin has thrived during periods of increasing global liquidity.
Further fueling speculation, President Trump will host the first-ever White House Crypto Summit on March 7. Reports suggest discussions could include establishing a Strategic Bitcoin Reserve, marking a potential paradigm shift in US crypto policy.
Also Read: Russia Rejects Bitcoin for National Wealth Fund, Sticks to Gold & Yuan
Prediction markets on Kalshi now indicate a 71% probability of the Bitcoin reserve plan materializing this year—its highest recorded likelihood. With rising institutional interest and possible government backing, Bitcoin’s next explosive rally may be closer than ever.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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