Bitcoin Set for a Major Upswing: The Countdown Begins
As global liquidity begins to shift, Bitcoin (BTC) is poised for a potential surge in the coming weeks, signaling a turning tide for crypto enthusiasts.
With analysts predicting a rebound in global money supply, Bitcoin aficionados are starting to speculate on a bull run that could transform market dynamics significantly.
“If this trend continues, global money supply will soon reclaim new all-time highs,” stated Andre Dragosch, European head of research at Bitwise, highlighting the growing optimism surrounding BTC.
Countdown to Bitcoin’s Resurgence: Insights from Bitwise
According to Andre Dragosch of Bitwise, a shift in the global liquidity landscape could lead to a major price upturn for Bitcoin, potentially happening in just three weeks. The chart depicting the US Dollar Index (DXY) shows it approaching levels not seen since last November, suggesting a weakening dollar which often benefits crypto and risk assets.
- The DXY is nearing a critical threshold below 104, indicating a trend that may favor cryptocurrencies.
- This aligns with historical trends where Bitcoin rallies are closely tied to the expansion of the global M2 money supply.
Positive Sentiment Among Analysts: Growing Confidence for a Bitcoin Breakout
Colin Talks Crypto, a well-known analyst in the space, echoed the sentiment, stating that the conjunction of rising M2 money supply and lower dollar strength heralds a significant shift for BTC. He emphasized that major rallies for risk assets, including Bitcoin, are on the horizon, with March 25 touted as a pivotal date.
“The rally for stocks, Bitcoin, and crypto is going to be epic,” he remarked on social media, drawing attention to the historic correlation between liquidity expansions and price upticks in the crypto sphere.
Government Moves: Strategic Bitcoin Reserve Could Be on the Horizon
The upcoming White House Crypto Summit, scheduled for March 7, is also generating buzz within the cryptocurrency community. US Commerce Secretary Howard Lutnick suggested that the event may pave the way for a ‘Strategic Bitcoin Reserve,’ a concept welcomed by many in the market.
While there are doubts about congressional support for such a reserve, leading figures in the crypto market, including Anthony Pompliano, believe it is an inevitable step toward legitimizing Bitcoin as a financial asset.
Market Predictions: A High Probability of a Bitcoin Reserve
As interest in Bitcoin continues to rise, current predictions indicate a 71% chance of establishing a Bitcoin reserve this year, according to Kalshi, a forecasting platform. This represents the highest probability recorded, further fueling speculation that institutional adoption of Bitcoin is gaining momentum.
Conclusion
In summary, Bitcoin appears poised for an important price movement as global liquidity conditions start to shift favorably. With the ongoing discussions about a strategic reserve and the potential for a bull market on the horizon, both analysts and investors are monitoring developments closely. As the countdown to March 25 progresses, all eyes will be on Bitcoin to see if it fulfills its projected bullish trajectory.
