jakiro
Source: CryptoCompound, compiled by Shaw bitchain vision
Savvy investors are quietly stocking up on Bitcoin as average investors are distracted by political noise or chasing tech stocks.Both listed companies and private enterprises are actively purchasing.Liquidity is expanding.M2 broad money supply grew again.The Fed also hinted that it will cut interest rates soon.
When all of these factors come together—and certainly will—we may see an explosion of Bitcoin, making the previous bull market seem trivial.
Here are what is happening right now and why I believe the next round of ups could be very strong.
Businesses are buying Bitcoin at record rate
Let’s start with the requirements.
MicroStrategy (now renamed “Strategy”) has just announced a massive purchase of Bitcoin again: increased its holdings of 21,000 BTC in late July and early August.This brings their total BTC holdings to 628,791, accounting for nearly 3% of the total Bitcoin circulation.This is not a typo.There is now a company that holds 3% of Bitcoin.
But they didn’t stop.
Their CEO made it clear that Bitcoin is their balance sheet strategy, and they will continue to buy as long as they have sufficient cash flow and investors support.Each quarter, they convert profits into bitcoin.Its strategy has essentially become a leveraged Bitcoin exchange-traded fund (ETF).
But they are not alone.
Japanese company Metaplanet is also following the same path.They just bought 463 BTC and announced plans to buy 210,000 BTC by 2027.This exceeds 1% of the total Bitcoin supply—and comes from only one company.
Occams Advisory bought 10 bitcoins last week and said it plans to double that number in the third quarter.Meanwhile, American Bitcoin, an emerging mining and investment company linked to the Trump family, is actively expanding its mining operations and has raised $220 million.They have mined more than 200 bitcoins and plan to go public through reverse mergers and acquisitions.
Overall, listed companies currently hold more than 1.4 million BTC, accounting for nearly 7% of the total supply, and private companies are catching up quickly.
Think about it carefully: the supply is disappearing.
M2 Money Supply Grows Fast
Now let’s talk about the other side of the equation: liquidity.
The U.S. M2 money supply has just reached a record $22 trillion.It’s not just a statistic, it’s also the driving force behind assets like Bitcoin.As the money supply expands, people begin to look for means of store of value.Historically, Bitcoin responds directly to the M2 trend.
From the end of 2022 to mid-2024, the broad money supply (M2) has shrunk.This is part of the reason why cryptocurrencies perform poorly.But now the situation has changed.Since the beginning of 2025, M2 has re-entered its upward track – and it has accelerated its growth rate.
More importantly, this liquidity begins to be reflected in asset prices: stocks, gold, and of course Bitcoin.
In this market, liquidity is crucial.Risk assets are the first to rise when central banks inject large amounts of cash into the financial system – and Bitcoin is the purest type of liquidity trading.
The Fed will cut interest rates – it’s just a matter of time
Let us take a long-term view.
The Fed once again kept interest rates unchanged in July.But the focus of the discussion has changed.Analysts, traders and industry insiders are all paying attention to the same signal:
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Inflation is cooling down.
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The labor market is weak.
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Growth is slowing.
This is the trio the Fed needs to justify the rate cut.In fact, many Wall Street people, including DoubleLine’s Jeffrey Gundlack, believe that a rate cut by the end of the year or early 2026 is almost inevitable.
Here are the important reasons:
When interest rates fall, the dollar weakens.Treasury bond yields fell.Suddenly, the attractiveness of holding cash and bonds has diminished.
Since then, capital has begun to flow into Bitcoin.
The last time the Fed moved from austerity to easing, Bitcoin soared from less than $4,000 in March 2020 to more than $60,000 in April 2021.This time we may see a similar situation—and even larger, as today’s corporate treasury, sovereign wealth funds and spot ETFs are all involved.
Demand far exceeds supply – the gap is huge
Here is a data that surprised me:
As of 2025, the number of Bitcoins purchased by listed companies has exceeded 3 times the number of newly mined Bitcoins during the same period.
Read it again.
After the halving, only 900 new Bitcoins were mined every day.But companies, funds, exchange-traded funds (ETFs) and institutions buy thousands of bitcoins every day.This is simply a fantasy.
This supply tight situation will only become increasingly serious—especially if interest rate cuts increase liquidity and stimulate investor interest.
On-chain data also shows that exchange balances are at a low point for years.People are not selling off – they are withdrawing bitcoins and cold storage.This is another important bullish signal.
We are in a period where supply is getting tighter, demand is getting stronger, and liquidity is rising.
You don’t need to have a PhD in Economics to understand where this is going.
What happens when the gate opens
If (or when) the Fed lowers interest rates and market liquidity increases further, we will see three things happening:
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Funds flow into Bitcoin
As bond and cash yields fall, funds chase growth and store of value.In this environment, Bitcoin becomes extremely attractive.
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Retail investors enter again
Headlines such as “Company Buy Bitcoin,” “ETFs Outstanding Performance,” and “BTC Sets New Highs” will attract retail investors to return to the market.
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The “FOMO” mentality of institutional investors
Large institutions that have been waiting and watching will feel pressure to invest money before missing the next wave of market conditions.Some institutions have already begun to act.
If you think Bitcoin has risen to $114,000 this year, it’s already amazing, then you should wait for the real liquidity wave to hit.This is just a warm-up.
Personally, I don’t try to accurately grasp every trough or peak.
I firmly believe in the power of accumulation.
The data clearly shows that companies are purchasing, money supply is increasing, interest rates are about to be lowered, but supply is decreasing.
Everything we’ve been looking forward to since the last bear market, since the halving, and since the approval of the exchange-traded funds, is now coming together.
So I remain patient, continue to hold Bitcoin, and pay attention to the development of the macro situation.
Because once this happens, there will be no more chances of remedy.
