Bitcoin has risen from $ 108,000 to more than $ 120,000 in less than a week, so that his aggressive upward trend is extended and has reached new highs on almost every trading day.
While Bitcoin’s US dollar price continues to rise, the same momentum is more muted in other Fiat currencies such as the euro and the British pound.
The divergence is bound by the decreasing strength of the US dollar. Since January, the dollar has fallen more than 10% compared to the pound and they will continue to fall against the euro.
This weakening trend has become a central point for market participants who consider it a broader signal of economic instability and a catalyst for what some people call a new phase of ‘bitcoinization’.
Weakening of US dollars
Analysts at Kobeissi Letter pointed From that the market is introducing ‘crisism mode’, and notes that Bitcoin is now rising in an almost vertical line.
According to the company, Bitcoin is in unknown territory while the American rates are climbing, the dollar has fallen by 11% in just six months and more than $ 1 trillion has been added to the total market capitalization of crypto in the past three months.
The Economic Analysis Platform further noted that two major turning points formed the performance of Bitcoin in 2025: the break of April 9 on American rates and the passage of President Trump’s ‘Big Beautiful Bill’.
Since the latter, Bitcoin has added more than $ 15,000 to its price, which strengthens the reverse correlation with the US Dollar Index.
In addition to the bullish story, institutional investors in Bitcoin seem to flood. Blackrock’s place Bitcoin ETF, IBIT, has collected $ 80 billion in assets under management in just over a year, a milestone that cost the top Gold ETF to reach for more than 15 years.
Capital rotation in Bitcoin
Moreover, traditional assets such as Bitcoin rallies are starting to stay. The S&P 500, when measured in Bitcoin, has fallen by 15% years to date and has fallen nearly 99.98% since 2012.
Although some people interpret this as a warning for legacy markets, others see it as confirmation that Bitcoin introduces a new phase of dominance that would attract further global liquidity for active.
Jamie Coutts, the main crypto analyst at Real Vision, repeated this sentiment and pointed out that the 40% rally of Bitcoin has been in accordance with an outbreak in global liquidity after a falling trend of three years.
According to Coutts, any increase of 1% of global liquidity could translate into an increase of 20%+ in the price of Bitcoin, a dynamic that emphasizes the scale of capital rotation in crypto.
He added:
“Although this simple model explains the continuation of capital whining from all corners of the world in Bitcoin, it is not responsible for the inevitable ‘Oh Sh#t’ moment of panic purchases that will happen … Ultimately it will be the best time, it will be worse.”