Compiled by: Blockchain in Plain Language
You can feel the change in the air. The signals pointing to the next crypto bull market are not unfounded — they are based on real and undeniable financial signals. As someone closely monitoring global markets, I believe we are on the verge of a strong rally in cryptocurrencies (especially Bitcoin). I want to analyze the reasons in detail.
From declining global interest rates to increasing M2 money supply and substantial institutional buying, momentum is rapidly building. And Bitcoin, with its core fundamentals, is perfectly positioned to benefit from it.
Let’s look at the data and macro trends. Because if you’re 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 permanently capped at 21 million. This characteristic makes it extremely powerful.
Currently, the price of Bitcoin is around $104,500 — a significant rebound since the bear market low in 2022. But this still feels like the starting point of a longer-term trend. Why? Because the world is gradually realizing the significance of Bitcoin: a decentralized, inflation-resistant store of value.
The U.S. government acknowledged this when it launched its strategic Bitcoin reserves in March 2025. This marks a significant shift in the government's view of Bitcoin — from 'speculative asset' to '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 rates:
The European Central Bank recently lowered its key interest rate to 2%.
The Bank of Canada has also lowered interest rates.
The U.S. Federal Reserve is facing increasing pressure to cut rates.
Low interest rates change investor behavior. As yields decline, the attractiveness of cash and bonds diminishes, and funds begin to flow into assets with greater upside potential — such as cryptocurrencies.
In past rate-cutting cycles, Bitcoin's price soared. The surge in Bitcoin's value during the low-interest period of 2020-2021 was no coincidence. Now, history seems set to repeat, but with a major difference: this time we have Bitcoin spot ETFs, institutional custodial infrastructure, and a broader public understanding of Bitcoin.
Holding Bitcoin in a world of declining interest rates means you’re not just speculating — you’re preserving value.
The global M2 money supply is rapidly climbing
Let’s talk about the money supply.
M2 represents the total amount of cash, savings, and other liquid assets in the economy. It is growing again. As of the second quarter of 2025, the global M2 supply is approaching $93 trillion. In the U.S. alone, M2 has reached a new high of $21.93 trillion, growing over 4% year-on-year.
This is not just a number — it’s a signal.
When the money supply expands, the purchasing power of fiat currency decreases. This is a basic principle of monetary economics. When cash depreciates, people start looking for hard assets to protect their wealth. This is when Bitcoin thrives.
Bitcoin is not just another risk asset. In a world of infinite fiat currency, its limited supply becomes even more precious with every 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 result is the same: increasing demand for a limited asset.
This steady inflow won't trigger short-term speculation — but it is the foundation for sustainable long-term price appreciation.
The macro environment is overwhelmingly bullish
It’s hard not to be optimistic when looking around.
Here’s a deep dive into the macro environment for 2025:
Interest rates are falling, undermining fiat currency.
The expansion of the money supply erodes the value of cash.
Institutional adoption increases, bringing legitimacy and capital.
From inflation to geopolitical issues, global uncertainty remains high.
Combining these factors, Bitcoin's role as a hedge asset — much like digital gold — is clearer than ever.
Coupled 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 is rising, supply is decreasing, and prices will respond accordingly.
If Bitcoin stays above $100,000 and breaks the resistance level of $112,000, the next target could be $120,000 or even higher.
Ethereum and altcoins will follow Bitcoin's lead
While I focus on Bitcoin, the entire crypto ecosystem is also worth mentioning. When Bitcoin rallies 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.
Rumors suggest that a spot ETH will be launched, which could unleash huge institutional demand.
Historically, when Bitcoin's dominance peaked, funds began 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.
Therefore, if you're focused on the market, don't just look at Bitcoin's price — also pay attention to the subsequent flow of funds.
This is not the peak
The truth is — this doesn’t feel like a peak; it feels more like a midpoint. The next crypto bull market is not a question of 'if', but 'when'.
The fundamentals are stronger than ever. The macro environment has aligned. Most people are still not fully aware of what’s 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 just be now — before the whole world catches on.
The market will advance in waves. But if you look long-term and position wisely, Bitcoin and cryptocurrencies still offer life-changing upside potential.
