Rising Dollar Liquidity and Falling Exchange Reserves Could Fuel a Bitcoin Rally, Metrics Suggest

  • BTC pulled back from $124.5K to ~$111K after a short correction.

  • Dollar liquidity (Trade‑Weighted U.S. Dollar Index, Broad) has stopped falling and may drive flows into risk assets.

  • Spot flows show $47M net buys, exchange reserves dropped to 2.55M BTC, and Binary CDD = 0, indicating long-term holders stayed dormant.

Bitcoin price outlook: BTC cooled to $111K from a $124K peak. Dollar liquidity, spot flows and dormant long-term holders suggest potential rally — read the data-driven analysis.

What is Bitcoin’s current outlook?

Bitcoin price outlook shows a healthy pullback from the August 14 all-time high of $124,474 to around $111,086 at press time. Key on-chain and market indicators — rising dollar liquidity, renewed spot net buys, falling exchange reserves and Binary CDD = 0 — point to supportive conditions for another rally if liquidity persists.

How are dollar flows affecting Bitcoin?

The Trade‑Weighted U.S. Dollar Index (Broad) has stopped falling and is climbing, which historically coincided with liquidity rotating into risk assets like Bitcoin. Analyst Joao Wedson (Alphractal) described this as renewed “dollar liquidity” entering markets. Alphractal’s Alpha Crypto Sentiment Gauge reads 54, indicating neutral sentiment that can quickly tilt bullish if flows accelerate.

‘,

🚀 Advanced Trading Tools Await You!
Maximize your potential. Join now and start trading!

‘,

📈 Professional Trading Platform
Leverage advanced tools and a wide range of coins to boost your investments. Sign up now!


];

var adplace = document.getElementById(“ads-bitget”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex;
adplace.innerHTML = adscodesBitget[adsindex];
sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBitget”, sessperindex);
}
})();

The Broad index’s uptick signals capital shifts across global markets. When the index gains momentum, institutional and macro flows often reallocate toward crypto as part of broader risk exposure.

Alphractal notes this phase may produce weeks of increased momentum — a pattern seen previously in 2021 when dollar-driven liquidity supported BTC rallies.


];

var adplace = document.getElementById(“ads-binance”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBinance”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBinance.length) : sessperindex;
adplace.innerHTML = adscodesBinance[adsindex];
sessperindex = adsindex === adscodesBinance.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBinance”, sessperindex);
}
})();

Source: https://en.coinotag.com/rising-dollar-liquidity-and-falling-exchange-reserves-could-fuel-a-bitcoin-rally-metrics-suggest/