Bitcoin Market Trends Blast Off as USD Hits Four-Month Low of 104.85 – Is Global Liquidity Sparking a Bull Run?

The US Dollar Index dropped to its four-month low of 104.85. This drop has created a new BTC price tailwind, increasing the market momentum. Experts believe Bitcoin will be epic, and March 25 is its blast-off date! Sources are optimistic about creating the Strategic Bitcoin Reserve. The US Commerce Secretary recently said that the first White House Crypto Summit on March 7 should possibly confirm the creation of a Strategic Bitcoin Reserve. Analysts believe global liquidity will reclaim a new all-time high if these Bitcoin market trends continue. An increase in money supply boosts asset prices, including risk assets like crypto.

Bitcoin Flashes Bullish Signal As Global Liquidity Soars

The global liquidity has appreciated since Q3 2024. Alternately, Bitcoin has been dropping to its disappointing low. Analysts believe BTC is to enter into a multi-month consolidation phase. Why is this happening? On January 20, 2025, BTC hit its all-time high of $109K. The long-term holders started their sell-off during this surge, bagging massive gains! The increasing sell-off dropped BTC prices within a month. Eventually, a larger decline followed due to the trade wars and other macroeconomic factors. Now is the time for the whales to get in action and accumulate! Thus, a long-term accumulation is expected to trigger a bullish phase!!

Bitcoin As a Hedge Against Inflation

The Bitcoin market trends are at the beginning of a bullish zone. BTC has been performing poorly in the past four months for several reasons. Though sell-off was the primary cause triggering the eventual decline, the global market events had a larger play. However, the trend is shifting towards an optimistic phase as USD depreciates. 

The USD values in the market have a direct impact on BTC prices. When the USD weakens, investors prepare themselves for a risky period and turn towards volatile assets like Bitcoin. Also, the declining dollar makes traditional assets less appealing. Above all, since the leading cryptos like BTC and ETH are priced in USD, a weakening dollar appreciates their value. Thus, Bitcoin is a hedge against inflation!

The Current Bitcoin Market Trends to Watch

Macroeconomic factors like USD devaluation and global liquidity expansion increase investor interest in Bitcoin. Also, the regulatory developments are bringing greater clarity, favoring BTC blast! In the short term, Bitcoin is in a falling trend channel; in the long term, Bitcoin is in a rising trend channel. 

Short-Term Bitcoin Market Trends

In the short term, BTC is on a downward trend. This trend indicates that it is experiencing a negative interest from short-term investors. Currently trading at $87,992, it has experienced a 6.9% increase in the last 24 hours. The recent swift price movement has shifted BTC supply dynamics from short-term holders to long-term holders.

Long-Term Bitcoin Market Trends

Bitcoin has formed its new resistance of around $92K-$93K, opening new doors for long-term investors. It is a cooling-off phase. As the demand has not returned to its fullest, this phase is ideal for accumulation. A blast is expected once the market transition begins, possibly when BTC touches $106K, boosting investors’ optimism.

Key Takeaways: Bitcoin Market Trends Signal a Strong Rebound Ahead

Bitcoin is in a crucial transition phase. The expanding global liquidity and the depreciating USD are fueling the BTC uptrend. While the short-term trends exhibit a cooling-off period, the long-term signals suggest a strong accumulation. This trend could trigger the next big rally. Additionally, the economic uncertainty emerging due to the trade wars is compelling investors to turn toward risky assets like Bitcoin. A positive response around the Strategic Bitcoin Reserve from the upcoming White House Crypto Summit could add further optimism. These recent events are increasing institutional interests and shifting the long-term outlook of Bitcoin to a bullish phase. Bitcoin could be gearing up for another historic surge!