Bitcoin Set to Soar As US Dollar Weakens and Global Liquidity Reaches New Highs

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Bitcoin is expected to surge in the next three weeks as global liquidity shifts in favor of crypto and risk assets. Andre Dragosch, head of research at Bitwise, predicts that the global money supply will reach new highs, supporting a Bitcoin price rebound.

On Wednesday, the FTSE 100 and European stocks surged, bouncing back from heavy losses, as the US dollar dropped to a four-month low. This followed a warning from President Trump that his tariffs would cause “a little disturbance.” The pound rose above $1.28 for the first time since December.

As the US dollar weakens, Bitcoin is gaining momentum. The US Dollar Index (DXY), which tracks the dollar’s strength against other currencies, is close to falling below 104, which could further boost Bitcoin’s price.

Bullish Signs Clearly Evident

For Dragosch, the signs are already evident. He believes that if the current trend continues, the global money supply will soon reach new record levels. He referred to the US Dollar Index (DXY) as “the most bullish chart you will see today,” indicating strong potential for a Bitcoin price surge.

However, the US dollar hasn’t seen significant gains from the new government administration yet, and ongoing trade tariffs are still negatively affecting the sentiment around riskier assets, like cryptocurrencies.

Analyst Colin Talks Crypto is watching the M2 money supply for signs of a Bitcoin breakout. Notably, Bitcoin’s price tends to rise strongly when global liquidity is increasing, as seen during past bull markets.

An EPIC Rally Imminent?

“The rally for stocks, bitcoin, crypto is going to be epic,” Colin Talks Crypto told X followers this week, sticking to his earlier prediction. After a period of substantial volatility, Bitcoin and altcoins could get a much-needed boost soon.

On March 7, U.S. President Donald Trump will host the first White House Crypto Summit. Commerce Secretary Howard Lutnick has suggested that the event will confirm plans for a strategic Bitcoin reserve.

Sentiment For Crypto Reserve Stands Strong!

Although some sources say that the reserve could be delayed due to a lack of support in Congress, many long-time crypto market experts believe the reserve is coming.“The Strategic Bitcoin Reserve is coming,” tweeted Anthony Pompliano, founder and CEO of Professional Capital Management.

Besides, Matt Hougan, the chief investment officer at crypto index fund and ETF manager Bitwise, predicted that the Bitcoin reserve will move forward and be made up “entirely” of Bitcoin.

To add to all of this, the recent data from prediction service Kalshi shows a 71% chance of the reserve happening this year, which marks the highest probability ever.