Dollar collapse: A golden opportunity for bitcoins and crypts

The global economy works according to cycles where the currencies entrusted play a key role in market dynamics. It seems that the weakening of the US dollar, often perceived as an indicator of macroeconomic modification, seems to open the opportunity for crypts this time. According to Raoul Pal, Analyst and CEO of Real Vision, the dollar fall could be the catalyst of the second quarter of 2025, especially the bull for bitcoins and the whole crypto market. This optimism is based on historical data and well -established macroeconomic trends. But is this situation a signal of a sustainable rally or simply a temporary market reaction?

Pressure dollar: Bullial signal for bitcoins

Since the beginning of February, the dollar index (DXY), which measures the value of the green back of the currencies, a decrease of 2.79 %and, according to TradingView, reached 104,258. The fall occurred, while Scott Bessnt, Minister of the US Treasury, confirmed in an interview with Fox News. For Raoul Pal, this dollar download is a key variable. He specifies in the publication on the Social Network X (Ex Twitter) on March 5, 2025 “that with dollar, rates and oil price, financial conditions are quickly softened and cause risk assets at the peak”.

The first reactions of the market crypto were not long. In parallel with the fall of DXY, Bitcoin increased by 6 %and this year 6. March 2025 reached $ 91,860, a trend that strengthens the hypothesis of direct connection between the dollar drop and the growing interest in cryptos. This scheme is not unprecedented: in 2020 during the pandemic, massive liquidity injections and close interest rates near zero powered bitcoins from $ 5,000 to more than $ 60,000 per year.

Global liquidity and cap challenge on March 25

In addition to the mere weakness of the dollar, this could play a key role in the coming weeks. According to André Drogosch, analysts on Bitwis, the increase in global money is about to achieve a new historical summit, a signal that could intensify the restored interest in risk assets, including Bitcoins. “If this trend is confirmed, the world money supply will soon exceed its previous records,” he said in the publication on the X (Ex Twitter) 5th March 2025.

Another element attracts the attention of analysts: Date 25 March 2025. Identified as a rocking point of several experts, this period would coincide with the expected reflection on the markets in connection with the renewal of capital flows on the cryptos. Colin speaks Crypto, a specialist in this sector, emphasizes March 5 on the X platform that “restoration of events, bitcoins and cryptos will be spectacular”. A scenario reminiscent of the previous phase of expansion, where the market followed ascending dynamics after the accumulation period.

However, the prospects remain the subject of many factors of uncertainty. Perhaps sudden correction of bitcoins, currency policy turnover, or unexpected reflection in the dollar could slow down this dynamics. The story shows that if the correlation between the dollar and bitcoin is proven, it is never linear, which is sometimes due to unpredictable modifications.

Luc Jose A.

A graduate of the Toulouse and the Blockchain Consultant Certification certification holder and I joined the adventure of Cointribuna in 2019. I convinced of the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.

Renunciation

The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.