Bitcoin surged from $108,000 to over $120,000 within a week, extending its aggressive upward trend, reaching a new all-time high on almost every trading day.
Bitcoin’s US dollar price continues to skyrocket, but the same momentum is more muted in other Fiat currencies, such as the Euro and the British pound.
Divergence is linked to a decline in the strength of the US dollar. Since January, the dollar has fallen by more than 10% against the pound and continues to fall against the euro.
This weakening trend has become the focus of market participants who view it as a broader signal of economic instability and as a catalyst for what some call a new stage of “bitcoinization.”
Weak the US dollar
Analysts at Kobeissi Letter point out that the market is in “crisis mode,” and note that Bitcoin is currently rising on a near-vertical line.
According to the company, Bitcoin is in unknown territory as US prices are rising, with the dollar falling 11% in just six months, adding more than $1 trillion to Crypto’s total market capitalization over the past three months.
The economic analytics platform also noted that two major turning points shaped Bitcoin’s performance in 2025.
Since the latter, Bitcoin has added over $15,000 to its price, strengthening its inverse correlation with the US dollar index.
In addition to the bullish narrative, institutional investors seem to be overflowing with Bitcoin. IBIT, BlackRock’s Spot Bitcoin ETF, has accumulated $800 billion in managed assets in more than a year.
Capital turnover into Bitcoin
Furthermore, as Bitcoin gathers, traditional assets are beginning to lag behind. The S&P 500, when measured in Bitcoin, has declined 15% since the start of the year, and has declined nearly 99.98% since 2012.
Some interpret this as a warning for the legacy market, while others confirm that Bitcoin is entering a new dominant phase that attracts more global liquidity to assets.
Jamie Coutts, chief Crypto analyst at Real Vision, repeated this sentiment, noting that 40% of Bitcoin’s rally since April coincides with a global liquidity breakout after the three-year downtrend.
According to Coutts, every 1% increase in global liquidity could lead to an increase of over 20% in Bitcoin’s price, highlighting the scale of the capital turnover into crypto.
He added:
“This simple model explains the continuation of capital hoover from every corner of the earth to Bitcoin, but there is no inevitable ‘aaa sh#t’ moment of panic purchase… In the end, it’s going to be awful. ”
