Source: CryptoCompound, Compiled by Shaw Jinse Finance While ordinary investors are distracted by political noise or chasing tech stocks, savvy investors are quietly accumulating Bitcoin. Public and private companies alike are actively buying. Liquidity is expanding. The M2 broad money supply is growing again. The Federal Reserve has also hinted at an impending rate cut. When all these factors combine—and they will—we could see explosive growth in Bitcoin, making the previous bull run seem insignificant. Here's what's happening now and why I believe the next leg up could be very strong. Businesses are buying Bitcoin at a record pace Let's start with demand. MicroStrategy (now just "Strategy") just announced another massive Bitcoin purchase: 21,000 BTC in late July and early August. This brings their total BTC holdings to 628,791, nearly 3% of all Bitcoin in circulation. This isn't a typo. Now, a single company holds 3% of all Bitcoin. But they haven't stopped. Their CEO has made it clear—Bitcoin is their balance sheet strategy, and they'll keep buying as long as cash flow is strong and investors support it. Every quarter, they convert their profits into Bitcoin. Their strategy has essentially become a leveraged Bitcoin exchange-traded fund (ETF). But they're not alone. Japanese company Metaplanet is following the same path. They just bought 463 BTC and announced plans to acquire 210,000 BTC by 2027. That's over 1% of Bitcoin's total supply—and that's from just one company. Occams Advisory bought 10 Bitcoins last week and said it plans to double that number in the third quarter. Meanwhile, American Bitcoin, a startup mining and investment firm tied to the Trump family, is aggressively expanding its mining operations and has raised $220 million. They've already mined over 200 Bitcoins and plan to go public through a reverse merger. Overall, public companies now hold over 1.4 million BTC, nearly 7% of the total supply, and private companies are quickly catching up. Think about that: supply is disappearing. M2 Money Supply Is Growing Rapidly Now let's talk about the other side of the equation: liquidity. The U.S. M2 money supply just reached a record high of $22 trillion. This isn't just a statistic; it's a driving force behind assets like Bitcoin. When the money supply expands, people begin to seek out stores of value. Historically, Bitcoin has responded directly to M2 trends. From late 2022 to mid-2024, the broad money supply (M2) contracted. This was partly responsible for cryptocurrencies' underperformance. But that's no longer the case. Since early 2025, M2 has resumed its upward trajectory—and its growth has accelerated. More importantly, this liquidity is starting to be reflected in asset prices: stocks, gold, and, of course, Bitcoin.
In this market, liquidity is crucial. When central banks flood the financial system with cash, risk assets rise first—and Bitcoin is the purest form of liquidity trading.
The Fed will cut rates—it's just a matter of time
Let's take the long view.
The Fed held interest rates steady again in July. But the focus of the discussion has shifted. Analysts, traders, and industry insiders are all watching for the same signals:
That's the trifecta the Fed needs to justify a rate cut. In fact, many on Wall Street, including DoubleLine's Jeffrey Gundlach, believe a rate cut is all but certain by the end of the year or early 2026. Here's why that matters: When interest rates fall, the dollar weakens. Treasury yields fall. Suddenly, holding cash and bonds becomes less attractive. Since then, capital has begun flowing into Bitcoin. The last time the Fed shifted from tightening to easing policy, Bitcoin soared from less than $4,000 in March 2020 to over $60,000 in April 2021. We may see a similar trend this time around—only on a larger scale, as corporate treasuries, sovereign wealth funds, and spot ETFs are now involved. Demand Far Outstrips Supply—The Gap Is Huge Here's a statistic that really blew my mind: By 2025, publicly traded companies had already purchased three times more Bitcoin than was mined during that same period. Read that again. After the halving, only 900 new Bitcoins were mined per day. Yet, corporations, funds, exchange-traded funds (ETFs), and institutions are buying thousands of Bitcoins daily. This is simply unbelievable. This supply squeeze will only get worse—especially if interest rate cuts increase liquidity and stimulate investor interest. On-chain data also shows that balances on exchanges are at multi-year lows. People aren't selling—they're withdrawing their Bitcoin and putting it into cold storage. This is another major bullish signal.
We're in a period where supply is getting tighter, demand is getting stronger, and liquidity is rising.
You don't need a PhD in economics to understand where this is headed.
What happens when the floodgates open
If (or when) the Fed lowers interest rates and market liquidity increases further, we will see three things happen:
Money flows into Bitcoin
With yields on bonds and cash falling, money searches for growth and stores of value. In this environment, Bitcoin becomes extremely attractive.
Retail Investors Are Back in the Market
Headlines like "Companies Buying Bitcoin," "ETFs Outperforming," and "BTC Hits New Highs" will draw retail investors back into the market.
Institutional Investor "FOMO"
Large institutions that have been sitting on the sidelines will feel pressure to invest before they miss out on the next wave. Some are already doing so.
If you think Bitcoin's rally to $114,000 this year is impressive, wait for the real wave of liquidity to arrive. This is just a warm-up.
Personally, I don't try to accurately predict every dip or peak.
I'm a firm believer in the power of accumulation.
The data is clear: businesses are buying, the money supply is increasing, interest rates are about to fall, and supply is decreasing.
Everything we have been waiting for since the last bear market, since the halving, and since the approval of exchange-traded funds is now converging.
So I am being patient, holding onto Bitcoin, and watching the macro situation develop.
Because once this happens, there will not be much room for recovery.
Clement
Jasper
Jixu
Hui Xin
YouQuan
Kikyo