The BRICS bloc could rewrite the future of Bitcoin, challenging the dollar.

The cryptocurrency market has recently maintained a relatively stable position, with a total market capitalization of 3.8 trillion USD at the time of press.

Bitcoin (BTC) also maintains a positive outlook, with a market capitalization of 2.21 trillion USD. Fluctuations in global market dynamics and increased liquidity may provide additional support for this asset.

Bitcoin Magazine's analysis examines how Bitcoin could benefit from these developments.

The increase in liquidity within BRICS may support Bitcoin

According to a recent report from Alphracatal, liquidity expansion is increasing within the BRICS block ( which includes Brazil, Russia, India, China, South Africa, and other countries ). This report tracks the monetary base and bank liquidity, showing that liquidity levels are rising and indicating the formation of a "new economic axis."

The development in international and domestic trade has played a key role in this expansion, while signaling a gradual trend away from dependence on the US dollar, the world's primary reserve currency.

Source: AlphractalA comparison between the BRICS monetary base and Bitcoin prices shows a positive correlation. The increase in liquidity often accompanies price surges of Bitcoin.

With the increase in liquidity on a global scale, Bitcoin is likely to continue moving in tandem with this trend.

Brazil and China: Drivers of Demand

The developments in Brazil and China have facilitated the adoption of digital assets in the past month. In Brazil, the government is considering establishing a Bitcoin reserve fund, called RESBit, with a plan to allocate 5% of the budget—approximately 19 billion USD—to this asset.

Meanwhile, China, despite banning cryptocurrency in 2021, is exploring the possibility of issuing a stablecoin backed by the yuan to position its currency for global adoption.

The approval of RESBit by Brazil could mark a significant turning point for Bitcoin, attracting more liquidity to the market and encouraging wider adoption within BRICS. A similar move from China could also have a substantial impact.

The impact of global economic events on Bitcoin price

Global economic events have had a significant impact on Bitcoin prices in the past. After Donald Trump's victory in the U.S. election in November 2024, Bitcoin surged, reaching a new all-time high.

Bitcoin Price Chart | Source: Bitcoin MagazineAccording to data from Bitcoin Magazine, Bitcoin has increased by more than 66% from November 5 to December 2024, reaching a level of 108,000 USD.

Superior to traditional markets

On a global scale, Bitcoin has consistently outperformed traditional markets. Data from Artemis shows that Bitcoin's year-to-date return has reached 103%, compared to 32% for the S&P 500 index.

Bitcoin compared to S&P500This growth is also reflected in trading activity. Global exchanges like Binance have reported trading volumes reaching 700 trillion USD, surpassing the estimated value of the global real estate market. These figures affirm the increasing trend of Bitcoin adoption worldwide.

An important indicator to monitor is the Bitcoin reserves on exchanges. Although it is on a downward trend, this indicates that many investors are transferring assets to personal wallets, often associated with long-term holding strategies.

Currently, Bitcoin reserves stand at 2.4 million according to data from CryptoQuant. A continued decline would indicate deeper adoption and reduced selling pressure in the market.

Mr. Giao