These 2 Indicators Show That Bitcoin Could Soon Rise Double

In the financial world, there are hundreds of complex indicators to predict market trends. However, sometimes simple signals provide the clearest picture. Currently, two factors are occurring simultaneously: The USD strength index (DXY) is plummeting, and the global money supply M2 is expanding strongly again. In the past, this combination has been a "powerful catalyst" for scarce assets like Bitcoin (BTC) – and this time may be no exception. With a price of about 118,000 USD/BTC, up nearly 29% since the beginning of the year, Bitcoin is at the intersection of new capital flowing into the market and a weakening USD – which could lead to a strong breakout, even doubling in value. Weak USD – Strong Bitcoin Throughout the 16-year history of Bitcoin, periods of USD weakness often coincide with the strong upward momentum of this cryptocurrency. DXY – a measure of the strength of the USD against a basket of major currencies – has just recorded its deepest drop below the 200-day moving average in 21 years, right as Bitcoin approaches its historical peak. This has happened in major bull cycles: 2013, 2017, and 2021. When the USD depreciates, investors often turn to decentralized, scarce assets that hold good value across borders – such as gold ( which is currently at a record high ) and Bitcoin. This time, the likelihood of a prolonged weak USD is quite high. Many forecasts suggest that the Federal Reserve (Fed) may lower interest rates 1-2 times before the end of 2025, opening up a period of monetary policy easing. At that time, coupled with the halving event in 2024 reducing the number of newly mined Bitcoins by half, the supply-demand balance will strongly tilt in favor of Bitcoin holders. Of course, it should be noted that a weak USD does not always mean an increase in Bitcoin. During certain risk-off market phases, both Bitcoin and USD can decline. However, in terms of long-term trends, a sustained weakening of DXY remains a positive factor for Bitcoin prices. Global Money Supply M2 Reaches Record High While the USD is weakening, the global M2 money supply – including cash and liquid deposits at 21 major central banks – has just reached a new record level: 55.5 trillion USD in July, returning to the growth trend that had temporarily halted in 2023. In the past, Bitcoin had a certain correlation with the growth rate of M2. When liquidity increases, investors have more capital to allocate to scarce assets. With a maximum supply of 21 million BTC, Bitcoin becomes a prominent choice. Notably, major central banks are simultaneously injecting liquidity: The Reserve Bank of India has cut the repo rate and lowered the reserve requirement ratio to inject money into the economy. The People's Bank of China maintains a loose monetary policy, preparing capital injection packages to stimulate demand. Other major economies are also moving towards a synchronized monetary easing cycle. Historical data shows that whenever the global M2 increases by 1%, Bitcoin usually records an average return of 65% or more within the following 12-18 months. If this scenario is applied from the current price of 118,000 USD, Bitcoin could very well aim for the 240,000 USD range – although of course, nothing is guaranteed. What Should Investors Pay Attention To? History is a suggestion, but not a prophecy. Rapid M2 growth can trigger inflation, causing the central bank to unexpectedly tighten monetary policy, or surplus liquidity may flow into other markets instead of crypto. However, at the present time, USD is weakening and central banks around the world are pumping money aggressively, which makes Bitcoin particularly attractive. If this trend continues, the possibility of Bitcoin doubling from here is entirely feasible.