Bitcoin has no counterparty risk.
No company. No country. No creditor. No currency. No competitor. No culture. Not even chaos.— Michael Saylor (@saylor) April 19, 2025
Bitcoin’s recent surge, briefly surpassing $87,700, has been driven by a weakening U.S. dollar and speculation around upcoming Treasury buybacks. Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, believes this could be the “last chance” to buy Bitcoin for less than $100,000. Hayes referred to the U.S. Treasury repurchasing its own debt as a “bazooka” for Bitcoin’s price, which could inject more liquidity into the market and push the cryptocurrency well past the $100,000 barrier.
The question isn’t “why is Bitcoin pumping.”
The question is “why wasn’t Bitcoin pumping.”
NgU is the default state.
— Samson Mow (@Excellion) April 21, 2025
The rise in Bitcoin’s price has also been supported by macroeconomic conditions, including the weakening U.S. dollar, which reached its lowest point since March 2022. As the dollar drops, Bitcoin becomes more attractive to investors seeking a hedge. Ryan Lee, Chief Analyst at Bitget Research, highlighted that a “descending wedge breakout” in Bitcoin’s technical chart supports this bullish narrative.
Where's The Bitcoin "Banana Zone"? – An Update
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Global institutional interest in Bitcoin remains strong, with investment firms from Japan and the U.K. continuing to pour capital into the cryptocurrency despite recent volatility.
Bitcoin driven by weakening dollar
Analysts like Jamie Coutts from Real Vision believe Bitcoin could climb as high as $132,000 by year-end, driven by expanding fiat money supply (M2).
This projection aligns with predictions from economist Timothy Peterson, who suggests Bitcoin could reach $138,000 within three months, considering similar market patterns in the past. The political climate adds another layer of uncertainty, with President Donald Trump’s calls to oust Federal Reserve Chair Jerome Powell increasing expectations of a potential rate cut. This could further weaken the dollar and benefit Bitcoin’s rally.
Despite the bullish outlook, some analysts remain cautious. Michaël van de Poppe warned that weekend price rallies can be misleading and that Bitcoin may experience a dip before breaking through significant resistance levels. The next major hurdle is seen around $91,000.
The convergence of weakening fiat currencies, rising institutional support, and Treasury buybacks creates a potentially favorable environment for Bitcoin’s price to continue its upward trajectory toward $100,000 and beyond.