Compiled by: Blockchain in Plain Language
You can feel the change in the air. The signals pointing to the next round of a cryptocurrency bull market are not baseless—they are based on real and undeniable financial signals. As someone who closely monitors global markets, I believe we are on the verge of a strong rise in cryptocurrencies (especially Bitcoin). I want to analyze the reasons in detail.
From the global decline in interest rates to the increase in M2 money supply, and the massive institutional buying, momentum is building rapidly. And Bitcoin, with its core fundamentals, is perfectly positioned to benefit from this.
Let's take a look at the data and macro trends. Because if you are still on the sidelines, now might be your last chance to prepare.
Bitcoin's fundamentals make it an ideal long-term asset.
Bitcoin is not just another digital currency. It is a direct response to the flaws in the global financial system. In an era of endless money printing by governments, Bitcoin's supply is forever capped at 21 million coins. This characteristic makes it incredibly powerful.
Currently, Bitcoin's price is around $104,500—a significant rebound since the bear market low in 2022. But this still feels like the beginning of a longer-term trend. Why? Because the world is gradually realizing Bitcoin's significance: a decentralized, anti-inflation store of value.
The U.S. government acknowledged this when it launched a strategic Bitcoin reserve in March 2025. This marks a significant shift in the government's view of Bitcoin—from a 'speculative asset' to a 'strategic macro hedge.'
Institutions are also following this trend. It's no longer just tech-savvy retail investors buying Bitcoin. Pension funds, insurance companies, and sovereign wealth funds are quietly accumulating.
The global decline in interest rates fuels the bull market.
We have officially entered a global easing cycle. Central banks around the world are competing to cut interest rates:
The European Central Bank recently lowered its key interest rate to 2%.
The Bank of Canada has also lowered its interest rates.
The U.S. Federal Reserve faces increasing pressure to cut interest rates.
Low interest rates change investor behavior. When yields decline, the appeal of cash and bonds weakens, and funds begin to flow into assets with greater upside potential—like cryptocurrencies.
During the past interest rate reduction cycle, Bitcoin's price soared. The surge in Bitcoin's value during the low-interest period of 2020-2021 is no coincidence. Now, history seems to be repeating itself, but with a significant difference: this time we have a Bitcoin spot ETF, institutional custody infrastructure, and a wider public understanding of Bitcoin.
Holding Bitcoin in a world of declining interest rates is not just speculation—it's wealth preservation.
Global M2 money supply is rising rapidly.
Let's talk about the money supply.
M2 represents the total amount of cash, savings, and other liquid assets in the economy. It is currently growing again. As of the second quarter of 2025, the global M2 supply is close to $93 trillion. In the U.S. alone, M2 has reached a new high of $21.93 trillion, an increase of over 4% year-on-year.
This is not just a number—it is a signal.
When the money supply expands, the purchasing power of fiat currency declines. This is a fundamental principle of monetary economics. When cash devalues, people begin to look for hard assets to protect their wealth. This is exactly when Bitcoin thrives.
Bitcoin is not just another risk asset. In a world of infinite fiat currency, its limited supply becomes more precious with each trillion dollars printed.
Institutions are quietly and steadily buying Bitcoin.
The largest movements of capital in the world are often understated. And now, this capital is flowing into Bitcoin.
In May 2025 alone, the U.S. spot Bitcoin ETF recorded a net inflow of $5.2 billion. These are not meme stock traders. These are institutions with a long-term vision, building positions they plan to hold for years.
Not just ETFs.
We see family offices, insurance companies, and even governments exploring direct Bitcoin holdings. Some choose self-custody, while others rely on trusted custodians like Fidelity or Coinbase Prime. But the outcome is the same: increasing demand for a limited asset.
This stable inflow will not trigger short-term speculation—but it is the foundation for sustainable long-term price appreciation.
The macro environment is bullish across the board.
Looking around, it's hard not to be optimistic.
Here is a deep dive into the macro environment of 2025:
Interest rates are falling, weakening fiat currency.
The expansion of the money supply erodes cash value.
Institutional adoption increases, bringing legitimacy and capital.
From inflation to geopolitical issues, global uncertainty remains high.
Putting these factors together, Bitcoin's role as a hedge asset—like digital gold—is clearer than ever.
Combined with the recent Bitcoin halving, which reduces the supply of new BTC in the market, you will see a perfect storm of supply and demand. Demand rises, supply decreases, and prices respond accordingly.
If Bitcoin holds above $100,000 and breaks the resistance at $112,000, the next target could be $120,000 or even higher.
Ethereum and altcoins will follow in Bitcoin's footsteps.
While I focus on Bitcoin, the entire crypto ecosystem is also worth mentioning. Because when Bitcoin rises strongly, other coins often follow.
Ethereum's price remains above $5,800, with strong momentum:
Layer 2 scaling solutions like Optimism and Arbitrum are being widely adopted.
The total value locked (TVL) in decentralized finance (DeFi) is steadily recovering.
There are rumors of a spot ETH being launched, which could release huge institutional demand.
Historically, when Bitcoin's dominance peaks, funds begin to rotate into Ethereum, then into top altcoins, and finally into smaller potential coins. This is the pattern we saw in 2017 and 2021—and it is likely to repeat in 2025.
So, if you're watching the market, don't just look at Bitcoin's price—also pay attention to where the funds flow afterward.
This is not a peak.
The truth is—this does not feel like a peak; it feels more like a midpoint. The next round of the cryptocurrency bull market is not a question of 'if' it will happen, but 'when' it will happen.
The fundamentals are stronger than ever. The macro environment has aligned. Most people are still not fully aware of what is happening.
If you've been waiting for the perfect entry point, remember: the best time to buy is during panic. The second-best time might be now—before the whole world catches on.
The market will move in waves. But if you look long-term and position wisely, Bitcoin and cryptocurrencies still offer life-changing upside potential.
