Bitcoin News Today: BRICS' Money Shifts May Fuel Bitcoin's Rise as Dollar Dominance Fades

Rising liquidity within the BRICS bloc, driven by expanding monetary bases and increasing trade among member nations, is drawing attention to its potential impact on Bitcoin. According to a recent report by Alphracatal, the monetary base in BRICS countries—including Brazil, Russia, India, China, South Africa, and others—has been growing, signaling a shift in global economic dynamics. The report highlights a positive correlation between this liquidity expansion and Bitcoin’s price movements, suggesting that broader liquidity trends in global markets could further support the cryptocurrency [1]. Analysts at AMBCrypto note that rising liquidity among BRICS nations may foster a “new economic axis,” gradually reducing dependence on the U.S. dollar and offering alternative avenues for capital allocation [1].

Brazil has emerged as a key player in this trend. The Brazilian government is exploring the creation of a Bitcoin Strategic Reserve (RESBit), with plans to allocate up to $18.6 billion—equating to 5% of its national budget—to Bitcoin as a hedge against currency volatility and geopolitical risks [3]. The initiative, outlined in Bill 4501/24, seeks to modernize treasury management and has drawn interest from financial experts and government agencies. Brazil is already a leader in cryptocurrency adoption, ranking first in Latin America and 10th globally, according to Chainalysis. In 2024 alone, the country transacted nearly $76 billion in digital assets, underscoring its growing influence in the global crypto landscape [3]. If implemented, the RESBit would position Brazil among a small group of nations exploring Bitcoin as a strategic asset.

Meanwhile, China is also advancing measures to strengthen the global role of the yuan. Despite its 2021 cryptocurrency ban, the country is exploring the development of a yuan-backed stablecoin to facilitate international trade and reduce reliance on the U.S. dollar. This initiative aligns with broader efforts to internationalize the yuan and bolster its presence in global capital markets [4]. A stablecoin tied to the yuan could provide a credible alternative for cross-border transactions and potentially drive further demand for Bitcoin as a complementary asset in a diversified portfolio.

The potential adoption of Bitcoin by large economies like Brazil and China could accelerate global liquidity shifts in favor of digital assets. According to TradingView, Bitcoin surged over 66% in the month following the U.S. election in November 2024, reaching a record high of $108,000 [1]. This performance outpaced traditional markets, with Bitcoin posting year-to-date gains of 103% compared to 32% for the S&P 500 [1]. On global exchanges, trading volumes for Bitcoin reached $700 trillion, surpassing the estimated value of global real estate, reflecting the cryptocurrency's growing adoption and market maturity [1].

From a macroeconomic perspective, analysts suggest that the money-printing strategies of BRICS+ nations—including Brazil, Russia, India, China, and others—could serve as a bullish tailwind for Bitcoin and the broader crypto market. As fiat currency debasement increases, investors may turn to Bitcoin as a hedge against inflation, mirroring historical patterns seen during past liquidity expansions [2]. Monitoring metrics such as BTC spot and perpetual futures basis, BTC dominance, and stablecoin flows can offer insights into market positioning and sentiment [2].

With Brazil and China moving toward more integrated crypto strategies, and BRICS liquidity rising, the implications for Bitcoin remain significant. While the U.S. dollar's strength—reflected in DXY and Treasury yields—can still cap crypto rallies, the long-term trajectory of digital assets appears to be supported by shifting global financial dynamics [2]. As liquidity grows and adoption deepens, Bitcoin may continue to outperform traditional markets and serve as a key asset in a reconfiguring global economic order.

Source:

[1] BRICS Nations Can Rewrite Bitcoin's Future, Challenge the Dollar: Here's How (https://ambcrypto.com/brics-nations-can-rewrite-bitcoins-future-challenge-the-dollar-heres-how/)

[2] 12-Nation BRICS Plus Money Printing Claim: Bullish Tailwind for Bitcoin BTC and Crypto in 2025 (https://blockchain.news/flashnews/12-nation-brics-plus-money-printing-claim-bullish-tailwind-for-bitcoin-btc-and-crypto-in-2025)

[3] Brazil to Hold Hearing on $18.6 Billion Bitcoin Reserve Proposal (https://cryptodnes.bg/en/brazil-to-hold-hearing-on-18-6-billion-bitcoin-reserve-proposal/)

[4] China Eyes Offshore RMB Stablecoin to Accelerate Yuan Internationalization (https://investinglive.com/centralbank/china-eyes-offshore-rmb-stablecoin-to-accelerate-yuan-internationalization-20250907/)