Investors in Bitcoin may only have three weeks left before the anticipated expansion of global liquidity significantly impacts the price of the leading cryptocurrency.
A recent analysis by Andre Dragosch, European Director of Research at Bitwise, predicts that global liquidity is on the verge of reaching new all-time highs. His insights, shared on X, underscore the potential for a major market shift.
Countdown to Bitcoin’s Resurgence
A fresh tailwind appears to be forming for Bitcoin’s price as the U.S. dollar weakens to its lowest level since early November last year. The U.S. Dollar Index (DXY), which measures the strength of the dollar against a basket of trade partner currencies, is approaching a critical threshold at 104. A further decline could mark a pivotal moment for risk assets.
Dragosch has already drawn conclusions from this trend. “If this pattern persists, global liquidity will soon reach new all-time highs,” he stated, describing the DXY as "the most bullish chart you will see today."
Colin Talks Crypto, another prominent analyst, is closely tracking the recovery of global M2 money supply as an indicator of an impending Bitcoin rally. “The rally for stocks, Bitcoin, and cryptocurrencies will be epic,” he told his X followers this week, reaffirming a previous forecast. “March 25 is the approximate date.”
Strategic Bitcoin Reserve: A 70% Probability
Bitcoin and altcoins could gain momentum even earlier than expected. On March 7, former U.S. President Donald Trump will host the first-ever White House crypto summit, an event that could serve as a catalyst for Bitcoin’s next move. Howard Lutnick, U.S. Secretary of Commerce, has hinted that the summit may confirm the establishment of a strategic Bitcoin reserve.
“The strategic Bitcoin reserve is coming,” stated Anthony Pompliano, founder and CEO of Professional Capital Management, in a post on X. “Everyone needs digital, reliable money.”
On March 5, Matt Hougan, Chief Investment Officer at Bitwise, forecasted that the reserve would indeed materialize and consist entirely of Bitcoin.
The latest data from predictive analytics firm Kalshi suggests a 71% probability of a Bitcoin reserve being established this year — the highest likelihood ever recorded. With these developments, Bitcoin’s trajectory appears increasingly bullish as the cryptocurrency market awaits a potential paradigm shift.
