A wave of rising global liquidity is sweeping through the financial world, sending capital flowing into alternative assets—and Bitcoin appears to be one of the biggest beneficiaries. As global investors face mounting uncertainty driven by economic instability and shifting U.S. policies, many are turning to BTC as a potential safe-haven asset. This shift in sentiment could be setting the stage for Bitcoin to climb even higher, potentially retesting the $90K mark and pushing toward the coveted $100K level.

Recent data from Alpha Extract shows that global liquidity has climbed sharply, marking a 3.31% rise, or approximately $4.175 trillion, in the Global Liquidity Index. This increase in capital availability is closely linked to changes in the broader macroeconomic environment, including a weakening U.S. dollar. The U.S. Dollar Index (DXY) has now dropped below a two-year range, reaching levels not seen since March 2022. This downturn in the dollar suggests that global capital is moving away from U.S. assets, seeking more favorable conditions in foreign markets and alternative stores of value.

Bitcoin has been quick to respond. Over the past few days, its price surged from $78,000 to $88,000, reflecting investors’ growing confidence in the cryptocurrency as a long-term hedge against economic instability. Market watchers are now drawing parallels to a similar liquidity spike in September 2024, which preceded Bitcoin’s run to $100K.

Much of this renewed optimism comes from institutional buying behavior. The Coinbase premium index—a metric that tracks the price difference between Coinbase (a U.S.-focused exchange) and global platforms—has flipped positive for the first time in days. This shift indicates that American institutional investors are once again buying Bitcoin in volume, likely in response to recent signs of market dislocation.

Meanwhile, the Korean Premium Index remains in positive territory, suggesting that Asian retail and institutional investors are also bullish on BTC. When these two investor groups align in sentiment, the market tends to experience stronger and more sustained momentum. Combined, these signals imply that the capital inflow into Bitcoin is not just speculative—it’s strategic.

The broader narrative framing Bitcoin as a store of value is also gaining traction. With global equity markets experiencing volatility and geopolitical uncertainty driven by controversial Trump-era policy decisions, assets like gold and Bitcoin are increasingly seen as safer bets. In fact, Bitcoin is now outperforming traditional indices like the S&P 500 (SPX), Nasdaq (NDQ), and New Light Tech (NLT), highlighting its resilience during periods of economic stress.

Recent rolling performance comparisons place Bitcoin second only to gold in terms of reliability, underscoring its evolution from a volatile tech asset to a legitimate macro hedge. Analysts note that if global liquidity continues to expand and economic uncertainties remain unresolved, Bitcoin could reclaim the $90K level in the near term and potentially test new all-time highs beyond $100K.

However, a word of caution remains. Should the Federal Reserve step in to tighten conditions or stabilize financial markets in response to the current volatility, Bitcoin’s upward trajectory could face headwinds. A rollback in liquidity could trigger a short-term pullback, with support potentially forming around $85K.

Still, with global liquidity rising and capital flowing into Bitcoin from both Western and Asian markets, the outlook remains positive. As confidence builds and macroeconomic trends align, BTC could continue to emerge as one of the few reliable assets in a turbulent financial world.