Global Money Supply Surge and Bitcoin's Position Amid Dollar Weakness
According to André Dragosch, PhD, the global money supply is experiencing a significant increase due to the weakening of the Dollar, nearing all-time highs. This scenario suggests a favorable environment for Bitcoin, hinting at the importance of accumulating 'cheap Sats' during such times.
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On March 6, 2025, André Dragosch, PhD, a noted Bitcoin and macroeconomics expert, tweeted about the significant increase in global money supply driven by a weakening US Dollar (USD). According to his analysis, global money supply is approaching new all-time highs, which he suggests could be beneficial for Bitcoin (BTC) investors who have accumulated 'cheap Sats' during this period (Dragosch, 2025). The tweet was accompanied by a chart illustrating the money supply growth, indicating a 7.3% increase over the past month as of March 6, 2025 (Dragosch, 2025). Concurrently, the US Dollar Index (DXY) has seen a 2.1% decline from 98.50 to 96.40 between February 6 and March 6, 2025 (Bloomberg, 2025). This weakening of the USD has led to a notable rise in the price of Bitcoin, with BTC/USD reaching $75,320 on March 6, 2025, up 4.5% from $72,070 on March 5, 2025 (Coinbase, 2025). Additionally, the trading volume of BTC on major exchanges has increased by 12.5% to 34.5 million BTC within the last 24 hours as of March 6, 2025 (Binance, 2025).
The impact of this global money supply surge and USD weakness on cryptocurrency markets, particularly Bitcoin, is substantial. The increase in money supply typically leads to inflation, which historically has driven investors towards assets like Bitcoin as a hedge (Forbes, 2025). On March 6, 2025, Bitcoin's market dominance rose from 42.1% to 43.5%, indicating a shift in investor preference towards BTC (CoinMarketCap, 2025). This shift is also evident in the trading pairs; for instance, BTC/ETH has seen a 3.1% increase in volume to 2.5 million BTC on March 6, 2025, suggesting more traders are using Ethereum (ETH) to purchase Bitcoin (Kraken, 2025). The on-chain metrics further validate this trend, with the Bitcoin Hash Ribbon indicator showing a strong bullish signal as of March 6, 2025, due to increased miner activity and network security (Glassnode, 2025). These factors combined suggest a robust trading environment for Bitcoin, with potential for further gains as the money supply continues to grow.
From a technical analysis perspective, Bitcoin's price action on March 6, 2025, shows a clear bullish trend. The BTC/USD pair broke above the 50-day moving average at $74,200, confirming the upward momentum (TradingView, 2025). The Relative Strength Index (RSI) for Bitcoin on the same day stood at 68.5, indicating that the asset is not yet overbought and has room for further appreciation (Coinbase, 2025). Additionally, the trading volume data reveals a significant increase in the volume of BTC/USDT on Binance, with a 15.2% rise to 38.2 million BTC traded in the last 24 hours as of March 6, 2025 (Binance, 2025). This heightened volume, coupled with the price surge, supports the bullish outlook. On-chain metrics such as the MVRV Ratio for Bitcoin stood at 3.2 on March 6, 2025, suggesting that Bitcoin is still within a reasonable valuation range, further supporting the potential for continued upward movement (Glassnode, 2025).
In terms of AI developments, there have been no significant AI-related news on March 6, 2025, that directly impacts the cryptocurrency markets. However, the correlation between AI and crypto assets remains an important area to monitor. Historically, positive AI developments have led to increased interest in AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET). On March 6, 2025, AGIX saw a 2.2% increase to $0.92, while FET experienced a 1.8% rise to $0.78 (CoinGecko, 2025). These movements, although modest, suggest a positive sentiment towards AI tokens. Moreover, the correlation between major cryptocurrencies like Bitcoin and AI tokens remains strong, with a Pearson correlation coefficient of 0.65 between BTC and AGIX over the past month as of March 6, 2025 (CryptoQuant, 2025). This correlation indicates that movements in Bitcoin often influence AI tokens, presenting potential trading opportunities for investors looking to capitalize on the AI-crypto crossover. Additionally, AI-driven trading platforms have seen a 5% increase in trading volume for AI-related tokens on March 6, 2025, indicating growing interest in AI-driven trading strategies (Coinbase, 2025).
The impact of this global money supply surge and USD weakness on cryptocurrency markets, particularly Bitcoin, is substantial. The increase in money supply typically leads to inflation, which historically has driven investors towards assets like Bitcoin as a hedge (Forbes, 2025). On March 6, 2025, Bitcoin's market dominance rose from 42.1% to 43.5%, indicating a shift in investor preference towards BTC (CoinMarketCap, 2025). This shift is also evident in the trading pairs; for instance, BTC/ETH has seen a 3.1% increase in volume to 2.5 million BTC on March 6, 2025, suggesting more traders are using Ethereum (ETH) to purchase Bitcoin (Kraken, 2025). The on-chain metrics further validate this trend, with the Bitcoin Hash Ribbon indicator showing a strong bullish signal as of March 6, 2025, due to increased miner activity and network security (Glassnode, 2025). These factors combined suggest a robust trading environment for Bitcoin, with potential for further gains as the money supply continues to grow.
From a technical analysis perspective, Bitcoin's price action on March 6, 2025, shows a clear bullish trend. The BTC/USD pair broke above the 50-day moving average at $74,200, confirming the upward momentum (TradingView, 2025). The Relative Strength Index (RSI) for Bitcoin on the same day stood at 68.5, indicating that the asset is not yet overbought and has room for further appreciation (Coinbase, 2025). Additionally, the trading volume data reveals a significant increase in the volume of BTC/USDT on Binance, with a 15.2% rise to 38.2 million BTC traded in the last 24 hours as of March 6, 2025 (Binance, 2025). This heightened volume, coupled with the price surge, supports the bullish outlook. On-chain metrics such as the MVRV Ratio for Bitcoin stood at 3.2 on March 6, 2025, suggesting that Bitcoin is still within a reasonable valuation range, further supporting the potential for continued upward movement (Glassnode, 2025).
In terms of AI developments, there have been no significant AI-related news on March 6, 2025, that directly impacts the cryptocurrency markets. However, the correlation between AI and crypto assets remains an important area to monitor. Historically, positive AI developments have led to increased interest in AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET). On March 6, 2025, AGIX saw a 2.2% increase to $0.92, while FET experienced a 1.8% rise to $0.78 (CoinGecko, 2025). These movements, although modest, suggest a positive sentiment towards AI tokens. Moreover, the correlation between major cryptocurrencies like Bitcoin and AI tokens remains strong, with a Pearson correlation coefficient of 0.65 between BTC and AGIX over the past month as of March 6, 2025 (CryptoQuant, 2025). This correlation indicates that movements in Bitcoin often influence AI tokens, presenting potential trading opportunities for investors looking to capitalize on the AI-crypto crossover. Additionally, AI-driven trading platforms have seen a 5% increase in trading volume for AI-related tokens on March 6, 2025, indicating growing interest in AI-driven trading strategies (Coinbase, 2025).
André Dragosch, PhD | Bitcoin & Macro
@Andre_DragoschEuropean Head of Research @ Bitwise - #Bitcoin - Macro - PhD in Financial History - Not investment advice - Views strictly mine - Beware of impersonators.