Bitcoin approaches critical breakout as liquidity conditions improve
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Bitcoin is gaining traction amid a weakening US dollar, with analysts highlighting March 25 as a potential inflection point for a breakout. The decline in the US Dollar Index (DXY) and increasing global money supply are creating favorable conditions for risk assets, reinforcing bullish expectations for Bitcoin.
The DXY has fallen to its lowest level since November, hovering near 104, a signal of declining dollar strength. Andre Dragosch, Head of Research at Bitwise, suggests that if this trend persists, global money supply could soon reach new all-time highs, historically a strong catalyst for Bitcoin rallies. Market participants have also pointed to the rebound in M2 money supply as an indicator of potential upside, with liquidity-driven momentum expected to fuel a broad risk asset rally. Analyst Colin Talks Crypto has set March 25 as the anticipated date for Bitcoin’s next major move, aligning with past liquidity cycles.
Beyond macroeconomic factors, institutional developments could further support Bitcoin’s trajectory. On March 7, President Donald Trump is set to host the White House Crypto Summit, where discussions may include the establishment of a Strategic Bitcoin Reserve. While some analysts remain cautious about congressional approval, market sentiment is increasingly pricing in government recognition of Bitcoin as a macroeconomic asset. According to Kalshi’s latest prediction data, the probability of a US Bitcoin reserve being established this year has risen to 71%, the highest on record.
Bitcoin’s price remains highly sensitive to macroeconomic conditions, with current trading levels around $85,700. Key resistance at $90,000 and potential support at $75,500 will be closely watched by traders assessing momentum. If global liquidity expansion continues and institutional backing strengthens, Bitcoin could enter a new bullish phase, positioning itself for further gains in the coming months.
The DXY has fallen to its lowest level since November, hovering near 104, a signal of declining dollar strength. Andre Dragosch, Head of Research at Bitwise, suggests that if this trend persists, global money supply could soon reach new all-time highs, historically a strong catalyst for Bitcoin rallies. Market participants have also pointed to the rebound in M2 money supply as an indicator of potential upside, with liquidity-driven momentum expected to fuel a broad risk asset rally. Analyst Colin Talks Crypto has set March 25 as the anticipated date for Bitcoin’s next major move, aligning with past liquidity cycles.
Beyond macroeconomic factors, institutional developments could further support Bitcoin’s trajectory. On March 7, President Donald Trump is set to host the White House Crypto Summit, where discussions may include the establishment of a Strategic Bitcoin Reserve. While some analysts remain cautious about congressional approval, market sentiment is increasingly pricing in government recognition of Bitcoin as a macroeconomic asset. According to Kalshi’s latest prediction data, the probability of a US Bitcoin reserve being established this year has risen to 71%, the highest on record.
Bitcoin’s price remains highly sensitive to macroeconomic conditions, with current trading levels around $85,700. Key resistance at $90,000 and potential support at $75,500 will be closely watched by traders assessing momentum. If global liquidity expansion continues and institutional backing strengthens, Bitcoin could enter a new bullish phase, positioning itself for further gains in the coming months.