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. Listed companies and private enterprises are actively purchasing. Liquidity is expanding. M2 money supply is growing again. The Federal Reserve also hints at imminent interest rate cuts.
When all these factors come together - and they will certainly converge - we might witness a explosive growth in Bitcoin that will make previous bull markets seem insignificant.
Here's what's happening now and why I believe the next rally could be incredibly strong.
Companies Are Buying Bitcoin at Record Speeds
Let's start with demand.
MicroStrategy (now renamed "Strategy") just announced another massive Bitcoin purchase: adding 21,000 BTC between late July and early August. This brings their total BTC holdings to 628,791, representing nearly 3% of Bitcoin's total circulating supply. This is not a typo. Now there's a company holding 3% of Bitcoin.
But they aren't stopping.
Their CEO explicitly stated that Bitcoin is their balance sheet strategy, and they will continue buying as long as cash flow is sufficient and investors support them. Every quarter, they convert profits into Bitcoin. Their strategy has essentially become a leveraged Bitcoin ETF.
But they aren't alone.
Japanese company Metaplanet is following the same path. They just purchased 463 BTC and announced plans to acquire 210,000 BTC by 2027. This exceeds 1% of Bitcoin's total supply - and that's from just one company.
Occams Advisory purchased 10 Bitcoins last week and stated plans to double this number in the third quarter. Meanwhile, American Bitcoin, an emerging mining and investment company related to the Trump family, is actively expanding its mining operations and has raised $220 million. They have already mined over 200 Bitcoins and plan to go public through a reverse merger.
Overall, listed companies currently hold over 1.4 million BTC, representing nearly 7% of total supply, with private companies quickly catching up.
Think about it: supply is disappearing.
M2 Money Supply Growing Rapidly
Now let's discuss the other side of the equation: liquidity.
US M2 money supply has just reached a record $22 trillion. This isn't just a statistic; it's a driving force for assets like Bitcoin. When money supply expands, people start seeking value storage methods. Historically, Bitcoin has directly responded to M2 trends.
From late 2022 to mid-2024, broad money supply (M2) had contracted. This was partly why cryptocurrency performance was poor. But now the situation has changed. Since early 2025, M2 has returned to an upward trajectory - and the growth is accelerating.
More importantly, this liquidity is starting to manifest in asset prices: stocks, gold, and of course, Bitcoin.
In this market, liquidity is crucial. When central banks inject massive cash into the financial system, risk assets rise first - and Bitcoin is the purest liquidity trade.
The Federal Reserve Will Cut Rates - It's Just a Matter of Time
Let's take a longer view.
The Federal Reserve maintained interest rates unchanged in July. But the focus of discussions has shifted. Analysts, traders, and industry insiders are all watching the same signals:
Inflation is cooling down.
The labor market is weakening.
Growth is slowing.
This is the triple combination the Federal Reserve needs to justify rate cuts. In fact, many Wall Street figures, including Jeffrey Gundlach from DoubleLine, believe rate cuts are almost inevitable before the end of the year or early 2026.
Here's why it's important:
When interest rates fall, the US dollar weakens. Treasury yields decline. Suddenly, holding cash and bonds becomes less attractive.
From that point, capital will start flowing massively into Bitcoin.
The last time the Federal Reserve shifted from a tightening policy to an expansionary one, Bitcoin surged from under $4,000 in March 2020 to over $60,000 in April 2021. This time we might see a similar scenario - and potentially even larger, because now corporate treasuries, sovereign wealth funds, and spot ETFs are involved.
Demand Far Exceeds Supply - The Gap Is Enormous
Here's a data point that shocked me:
By 2025, the number of Bitcoins purchased by listed companies has exceeded newly mined Bitcoin in the same period by 3 times.
Read that again.
After halving, only 900 new Bitcoins are mined daily. But companies, funds, ETFs, and institutions are purchasing thousands of Bitcoins every day. It's simply unbelievable.
This supply-constrained situation will only become more severe - especially if rate cuts increase liquidity and stimulate investor interest.
On-chain data also shows exchange balances are at multi-year lows. People aren't selling - they're extracting Bitcoin and using cold storage. This is another important bullish signal.
We are in a period where supply is becoming increasingly tight, demand is growing stronger, and liquidity is rising.
You don't need an economics doctorate to understand where this is heading.
What Happens When the Floodgates Open
If (or when) the Federal Reserve lowers rates and market liquidity further increases, we will see three things happen:
Capital Flows into Bitcoin
As bond and cash yields decrease, funds will chase growth and value storage methods. In this environment, Bitcoin becomes extremely attractive.
Retail Investors Return
Headlines like "Companies Buying Bitcoin", "ETF Performance Excellent", and "BTC Hits New Highs" will attract retail investors back to the market.
Institutional Investor FOMO
Large institutions that have been watching will feel pressure to invest before missing the next market move. Some institutions are already taking action.
If you thought Bitcoin reaching $114,000 this year was impressive, just wait for the real liquidity wave. This is just a warm-up.
Personally, I'm not trying to time every bottom or peak precisely.
I believe in the power of accumulation.
The data clearly shows: Companies are purchasing, money supply is increasing, rates are about to be cut, and supply is decreasing.
Everything we've anticipated since the last bear market, since halving, since ETF approval is now converging.
So I remain patient, continuously hold Bitcoin, and watch the macro developments.
Because once this happens, there won't be many chances for recovery.
