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The increase in global liquidity and the weakening of the US dollar could signal a new surge for the cryptocurrency market. Experts believe favorable conditions are aligning for Bitcoin (BTC) 
$102,998, potentially opening the door to significant price movements.
As the US Dollar Weakens, Bitcoin Grows Stronger
Midweek, the US dollar fell to its lowest level in four months, coinciding with a recovery in European markets. Many major indices, including the FTSE 100, have managed to recover a considerable portion of their recent losses. This development was sparked by US President Donald Trump’s warnings regarding tariffs, which led to expectations of short-term market volatility.
There is a clear correlation between the weakening dollar and the strengthening of Bitcoin. The US Dollar Index (DXY) measures the dollar’s strength against other major currencies and is currently hovering near the critical 97-98 level. Should the DXY fall below this threshold, it is highly likely that Bitcoin will gain new upward momentum.
The performance of the DXY is closely monitored by cryptocurrency investors. In technical analysis, any dips below this level are generally interpreted as heralding a new upward wave for Bitcoin.
Global Money Supply Could Break Records
Bitwise Research President Andre Dragosch emphasized that the global money supply is on track to reach new heights. According to him, this scenario creates a “dream-like” environment for Bitcoin. Dragosch referred to the DXY graph indicating the dollar’s decline as “today’s most bullish chart,” asserting that the leading cryptocurrency holds serious potential.
It is noteworthy that despite the new administration taking office, the dollar has not performed strongly. Moreover, current tariffs continue to exert pressure on investor confidence. Under such stresses, riskier assets, especially cryptocurrencies like Bitcoin, become more appealing.
There is a growing sense of optimism in the market, paralleling Dragosch’s comments. Investors recall past surges during periods of increased liquidity and believe a similar scenario could unfold again. Popular crypto analyst Colin Talks Crypto also supports this optimistic view, suggesting that a new Bitcoin rally might be on the horizon.
Despite the recent volatility of Bitcoin and other cryptocurrencies, expectations are rising that this new wave of liquidity could invigorate the market once again. According to Colin, this rally could be strong enough to be deemed “epic.”
