Author: CryptoCompound

Translation: Shaw Golden Finance

While ordinary investors are distracted by political noise or chasing tech stocks, savvy investors are quietly accumulating Bitcoin. Both public companies and private enterprises are actively purchasing. Liquidity is expanding. The M2 broad money supply is growing again. The Federal Reserve has also hinted at an impending interest rate cut.

When all these factors come together—and they certainly will—we may witness explosive growth in Bitcoin, making previous bull markets seem trivial.

Here’s what’s currently happening and why I believe the next rally could be very strong.

Corporations are buying Bitcoin at a record pace

Let’s start with demand.

MicroStrategy (now renamed "Strategy") has just announced another large-scale purchase of Bitcoin: they acquired 21,000 BTC at the end of July and early August. This brings their total BTC holdings to 628,791, accounting for nearly 3% of the total Bitcoin supply. This is not a typo. There is now a company that holds 3% of Bitcoin.

But they haven’t stopped.

Their CEO has made it clear—Bitcoin is their balance sheet strategy, and as long as cash flow is sufficient and there is investor support, they will continue to buy. Each quarter, they convert profits into Bitcoin. Their strategy has essentially turned into a leveraged Bitcoin exchange-traded fund (ETF).

But they are not alone.

Japanese company Metaplanet is also on the same path. They just purchased 463 BTC and announced plans to acquire 210,000 BTC by 2027. This exceeds 1% of the total Bitcoin supply—and it’s just from one company.

Occams Advisory purchased 10 Bitcoin last week and stated plans to double that number in the third quarter. Meanwhile, the emerging mining and investment company American Bitcoin, associated with the Trump family, is actively expanding its mining operations and has raised $220 million. They have mined over 200 Bitcoin and plan to go public through a reverse merger.

Overall, public companies currently hold over 1.4 million BTC, accounting for nearly 7% of the total supply, while private companies are quickly catching up.

Think about it: 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 has just reached a record $22 trillion. This is not just a statistic; it is a driving force for assets like Bitcoin. When the money supply expands, people start looking for stores of value. Historically, Bitcoin has reacted directly to M2 trends.

From the end of 2022 to mid-2024, the broad money supply (M2) contracted. This was part of the reason for the poor performance of cryptocurrencies. But the situation has changed now. Since the beginning of 2025, M2 has resumed its upward trajectory—and at an accelerating pace.

More importantly, this liquidity is starting to reflect in asset prices: stocks, gold, and of course, Bitcoin.

In this market, liquidity is crucial. When central banks inject large amounts of cash into the financial system, risk assets rise first—and Bitcoin is the purest form of liquidity trading.

The Federal Reserve will cut rates—it’s just a matter of time

Let’s take a longer view.

The Federal Reserve kept interest rates unchanged in July. But the focus of the discussion has shifted. Analysts, traders, and industry insiders are all watching the same signals:

• Inflation is cooling.
• The labor market is weakening.
• Growth is slowing.

This is the trifecta the Federal Reserve needs to justify a rate cut. In fact, many on Wall Street, including Jeffrey Gundlach of DoubleLine, believe that a rate cut is almost inevitable before the end of the year or early 2026.

Here are the key reasons:

When interest rates fall, the dollar weakens. Treasury yields decline. Suddenly, the appeal of holding cash and bonds diminishes.

From that point on, capital begins to flow into Bitcoin.

The last time the Federal Reserve shifted from tightening to easing, Bitcoin soared from under $4,000 in March 2020 to over $60,000 in April 2021. This time we may see a similar situation—and on a larger scale, as corporate treasuries, sovereign wealth funds, and spot ETFs are all involved.

Demand far exceeds supply—the gap is enormous.

Here’s a shocking statistic:

By 2025, the number of Bitcoins purchased by public companies will exceed the number of newly mined Bitcoins during the same period by more than three times.

Read that again.

After the halving, only 900 new Bitcoins are mined each day. But companies, funds, ETFs, and institutions are purchasing thousands of Bitcoins daily. This is simply absurd.

This supply crunch will only worsen—especially if rate cuts increase liquidity and stimulate investor interest.

On-chain data also shows that exchange balances are at multi-year lows. People are not selling—they are withdrawing Bitcoin and putting it into cold storage. This is another important bullish signal.

We are in a period where supply is tightening, demand is strengthening, and liquidity is rising.

You don’t need a PhD in economics to understand where this is headed.

What will happen when the floodgates open

If (or when) the Federal Reserve cuts interest rates and market liquidity increases further, we will see three things happen:

Funds flowing into Bitcoin

As bond and cash yields decline, funds chase growth and stores of value. In this environment, Bitcoin becomes extremely attractive.

Retail investors re-enter the market

Headlines like "Companies buying Bitcoin," "ETFs performing well," and "BTC hitting new highs" will attract retail investors back into the market.

Institutional investors' FOMO mentality

Large institutions that have been sitting on the sidelines will feel pressure to invest before missing the next wave. Some institutions have already begun to act.

If you think Bitcoin rising to $114,000 this year is impressive, just wait for the real liquidity wave to hit. This is just a warm-up.

Personally, I am not trying to perfectly time every low or high.

I firmly believe in the power of accumulation.

The data clearly shows: companies are purchasing, the money supply is increasing, interest rates are about to be cut, and supply is decreasing.

Everything we have been waiting for since the last bear market, since the halving, and since the approval of ETFs is now coming together.

So I remain patient, continue to hold Bitcoin, and watch the macro developments.

Because once this happens, there won’t be many chances for a remedy.

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