Bitcoin may be entering a pivotal phase in its market cycle, with leading analysts forecasting a significant upward move in the near term. As global liquidity trends shift and the U.S. dollar shows signs of weakening, macroeconomic conditions are increasingly aligning in favor of risk assets—especially Bitcoin. With institutional interest surging and potential policy developments on the horizon, many experts believe the foundation is being laid for Bitcoin’s next major rally.
Global Liquidity Surge Fuels Bitcoin Momentum
A growing wave of liquidity is sweeping across global financial markets, and Bitcoin stands to be one of the primary beneficiaries. Andre Dragosch, Head of Research at Bitwise, has highlighted that global money supply metrics are on track to reach new all-time highs. This expansion in liquidity historically correlates with strong performance in high-growth assets like cryptocurrencies.
When central banks ease monetary policy or when fiscal stimulus injects capital into the economy, investors often seek higher returns in alternative assets. Bitcoin, now widely recognized as digital gold and an inflation hedge, tends to outperform during such periods. Dragosch emphasized this point by calling the U.S. Dollar Index (DXY) chart “the most bullish chart you will see today,” noting that sustained dollar weakness could unlock powerful tailwinds for BTC.
“If this trend continues like that, global money supply will soon reclaim new all-time highs. You know what that means for BTC…”
This sentiment echoes past bull cycles, where waves of liquidity—from quantitative easing to pandemic-era stimulus—propelled Bitcoin to new highs.
👉 Discover how rising liquidity could trigger the next Bitcoin surge.
U.S. Dollar Dips—Bitcoin Gains Ground
Recent market movements show the U.S. dollar retreating to a four-month low, as measured by the DXY index. This decline follows renewed trade tensions and policy uncertainty, including warnings from former President Donald Trump about potential tariffs causing short-term economic “disturbance.” While these geopolitical factors create volatility, they also reduce confidence in fiat currencies—driving capital toward decentralized alternatives.
As the dollar weakens, international markets respond. The FTSE 100 and broader European equities rebounded sharply amid the dollar's drop, while the British pound climbed above $1.28 for the first time since December. A weaker greenback typically boosts dollar-denominated assets like commodities and crypto, making them cheaper and more attractive to foreign investors.
For Bitcoin, breaking below the 104 level on the DXY could act as a catalyst for further gains. Historically, inverse correlation between BTC and the dollar has been strong—when the dollar falls, Bitcoin tends to rise.
M2 Money Supply: A Key Indicator for Crypto Bulls
Crypto analyst Colin Talks Crypto is closely monitoring M2 money supply data as a leading indicator for a potential Bitcoin breakout. M2, which includes cash, checking deposits, and easily convertible near money, serves as a broad measure of liquidity in the economy.
In previous bull runs—such as those in 2017 and 2021—expansions in M2 preceded explosive growth in cryptocurrency valuations. As more money chases fewer high-return opportunities, investors increasingly turn to Bitcoin as a store of value and speculative asset.
Colin remains confident in his earlier forecast:
“The rally for stocks, bitcoin, crypto is going to be epic.”
After a period of consolidation and high volatility, both Bitcoin and altcoins appear poised for a resurgence—especially if liquidity continues to expand.
White House Crypto Summit: A Turning Point for U.S. Policy?
One of the most anticipated events in the crypto space is the upcoming White House Crypto Summit on March 7. This historic gathering could mark a turning point in how the U.S. government views digital assets. Commerce Secretary Howard Lutnick has hinted at plans for a Strategic Bitcoin Reserve, a bold initiative that would position Bitcoin as part of national financial infrastructure.
While some reports suggest legislative hurdles may delay implementation due to lack of congressional support, key figures in the industry remain optimistic. Anthony Pompliano, prominent Bitcoin advocate and CEO of Professional Capital Management, declared:
“The Strategic Bitcoin Reserve is coming.”
Matt Hougan, Chief Investment Officer at Bitwise, agrees, predicting that any reserve established would be composed entirely of Bitcoin—not a basket of various cryptocurrencies.
Such a move would send a powerful signal to global markets: Bitcoin is no longer just an alternative investment—it’s becoming a strategic asset.
👉 Explore how government adoption could accelerate Bitcoin’s rise.
Bitcoin as a National Asset: Is It Possible?
Prediction markets are already pricing in significant odds for the creation of a U.S. Bitcoin reserve. According to data from Kalshi, there’s now a 71% chance that the U.S. will establish a strategic Bitcoin reserve within the year—the highest probability ever recorded.
This growing confidence reflects broader shifts:
- Rising institutional adoption
- Increasing recognition of Bitcoin’s scarcity and durability
- Macroeconomic pressures favoring hard assets
If realized, a national Bitcoin reserve would not only validate the asset class but also enhance long-term demand. Countries like El Salvador have already adopted Bitcoin as legal tender; a U.S.-led reserve could inspire similar moves worldwide.
Frequently Asked Questions (FAQs)
What is the Strategic Bitcoin Reserve?
The Strategic Bitcoin Reserve refers to a proposed initiative where the U.S. government would acquire and hold Bitcoin as part of its national financial strategy. Market data suggests a 71% probability of this happening in 2025.
How does global liquidity affect Bitcoin?
When global liquidity rises—through central bank easing or fiscal stimulus—investors often shift funds into risk-on assets. Bitcoin has historically performed strongly during such periods due to its limited supply and growing credibility.
What drives Bitcoin’s price today?
Key factors include U.S. dollar strength, macroeconomic policy, institutional inflows, regulatory developments, and market sentiment—all converging to influence short- and long-term price action.
Could Bitcoin reach $100,000 soon?
While current price targets range between $90,000 and $95,000, sustained liquidity growth and policy support could push Bitcoin toward six-figure territory in 2025.
Why is dollar weakness good for crypto?
A weaker U.S. dollar reduces purchasing power and increases inflation expectations. Investors often turn to decentralized assets like Bitcoin as hedges against currency devaluation.
Is now a good time to invest in Bitcoin?
With bullish macro trends emerging—including falling dollar strength and rising liquidity—many analysts view this as a favorable environment for strategic accumulation.
Final Outlook: The Stage Is Set for a Major Move
With liquidity expanding, the dollar weakening, and potential policy tailwinds emerging, Bitcoin appears to be entering a highly favorable phase. Analysts from Bitwise to independent macro observers are aligning around one conclusion: a major rally may be imminent.
Whether driven by institutional inflows, retail participation, or even government-led adoption, the ecosystem is evolving rapidly. Now more than ever, Bitcoin is being treated not just as a speculative asset but as a foundational component of modern finance.
👉 Stay ahead of the next market move with real-time insights and tools.
As we approach critical technical and political milestones in 2025, keeping an eye on liquidity trends, dollar performance, and regulatory signals will be essential for investors navigating this dynamic landscape. The confluence of these forces suggests that Bitcoin’s most epic rally yet might already be underway.