#TrumpVsMusk ¿Is the dollar falling and Bitcoin still not taking off?
$BTC 🔥💥🔥💥🔥💥🔥
While the US dollar index (DXY) experiences its worst semiannual performance in more than five decades, the M2 money supply reached a historic high of $21.94 trillion in May 2025. Together, these movements create an environment of high liquidity and distrust in fiat currency, which has historically been favorable for assets like Bitcoin.
A macro context that favors crypto adoption.
The increase in the money supply has been accompanied by a marked weakness of the dollar. So far in 2025, the Dollar Index has fallen by 10.8%, the largest loss for a first half since the breakdown of the Bretton Woods system in 1973 and the worst period since 2009.
This decline not only reflects a loss of purchasing power but also suggests long-term structural problems for the global reserve currency. “The erosion of the dollar is generating doubts in traditional markets,” analysts of the report noted, predicting a possible migration of capital to alternative safe havens, such as gold, real assets, and Bitcoin.
Why does it matter for Bitcoin?
An environment of greater liquidity and a weakened fiat currency has historically been a catalyst for the crypto market. In previous cycles, excess M2 has coincided with spikes in BTC prices, as part of that capital flows into higher-risk assets or alternative stores of value.
Although Bitcoin has shown sideways movements in recent weeks, analysts assert that monetary expansion continues, which could anticipate a new wave of capital inflow if a narrative change or a trigger occurs in the market