Signs of a new bull run in the Crypto Assets market

The changes in the global financial markets are paving the way for the next round of the bull run in Crypto Assets. These signs are not baseless but are based on real and undeniable economic indicators. As an observer closely monitoring global market trends, I believe we are at a critical point where Crypto Assets, particularly Bitcoin, are about to surge strongly. Let's delve into the reasons behind this.

From the decline in global interest rates to the increase in money supply, and then to the large-scale entry of institutional investors, various factors are rapidly accumulating upward momentum. Bitcoin, with its unique fundamentals, is perfectly positioned to benefit from these trends.

Let us take a close look at these data and macro trends. If you are still hesitating and observing, now might be your last preparation opportunity.

The fundamentals of Bitcoin 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. As governments around the world continue to expand the money supply, the total supply of Bitcoin is forever capped at 21 million coins. This characteristic gives it a unique value.

Currently, the price of Bitcoin has approached $105,000, achieving a significant rebound since the bear market low in 2022. However, this may just be the beginning of a long-term upward trend. The reason is that the world is gradually recognizing the essence of Bitcoin: a decentralized, anti-inflation value storage tool.

Recently, some national governments have begun to recognize the strategic value of Bitcoin, viewing it as a macro hedge tool rather than merely a speculative asset. This marks a significant shift in the official stance towards Bitcoin.

Institutional investors are also joining this trend. It is no longer just tech-savvy retail investors buying Bitcoin; large institutions such as pension funds, insurance companies, and sovereign wealth funds are quietly accumulating.

Global interest rate decline fuels the bull run

We have entered a global easing cycle. Central banks in several major economies are lowering interest rates:

• The European Central Bank recently lowered its key interest rate to 2%.
• The Bank of Canada has also implemented interest rate cuts.
• The Federal Reserve is facing increasing pressure to cut interest rates.

A low interest rate environment will change investor behavior. When the yields on traditional investment tools decline, the appeal of cash and bonds weakens, and funds begin to flow into assets with greater upside potential, such as Crypto Assets.

During past interest rate cut cycles, the price of Bitcoin has seen significant increases. The substantial rise in Bitcoin's value during the low interest rate period of 2020-2021 was not a coincidence. Today, history seems to be repeating itself, but there is a major difference compared to before: this time we have Bitcoin spot ETFs, improved institutional custody infrastructure, and a broader public awareness and understanding of Bitcoin.

Holding Bitcoin in an environment of declining interest rates is not only an investment strategy but also a means of preserving value.

The global money supply is rising rapidly

Let us focus on the important indicator of money supply.

M2 represents the total amount of cash, savings, and other liquid assets in the economy. Currently, this indicator is growing again. As of recently, the global M2 supply is approaching $93 trillion. In the United States alone, M2 has reached a new high of $21.93 trillion, with a year-on-year growth of over 4%.

This is not just a number; it is an important economic signal.

When the money supply expands, the purchasing power of fiat currency inevitably declines. This is a fundamental principle of monetary economics. When cash depreciates, people begin to seek hard assets to protect their wealth. This is precisely the best time for Bitcoin to thrive.

In a world of unlimited fiat currency, the limited supply of Bitcoin becomes increasingly precious with every trillion printed.

Institutional investors steadily increase their holdings of Bitcoin

The movements of large funds often go unnoticed, but now these funds are quietly flowing into the Bitcoin market.

In the past month, the US spot Bitcoin ETF has recorded a net inflow of $5.2 billion. These are not short-term speculators, but institutions with a long-term investment vision, who are building positions intended to be held for several years.

It's not just ETFs that are favored.

We have observed that family offices, insurance companies, and even some government agencies are exploring the possibility of directly holding Bitcoin. Some choose self-custody, while others rely on trusted custodians. But the end result is consistent: the demand for this scarce asset is continuously increasing.

This stable influx of funds may not trigger short-term speculation, but it lays a solid foundation for long-term sustainable price appreciation.

The macro environment is fully favorable

Looking at the big picture, it's hard not to remain optimistic about the Crypto Assets market.

The current macro environment exhibits the following characteristics:

• The decline in interest rates has weakened the appeal of fiat currencies.
• The expansion of the money supply erodes the value of cash.
• Institutions adopting will bring legitimacy and substantial capital.
• From inflation to geopolitical issues, global uncertainty remains high.

These factors combined make Bitcoin's role as a hedge asset clearer than ever before. It is like the gold of the digital age.

In addition, the recent Bitcoin halving event has reduced the supply of new BTC in the market, and we are facing a perfect storm of supply and demand. With rising demand and decreasing supply, prices will naturally respond accordingly.

If Bitcoin can stabilize above $100,000 and break through the resistance level of $112,000, the next target may be $120,000 or even higher.

Ethereum and other Crypto Assets will follow Bitcoin's rise

Although we mainly focus on Bitcoin, the entire crypto assets ecosystem is also worth paying attention to. This is because when Bitcoin is on a strong bull run, other crypto assets often follow.

Ethereum price remains above $5800 with strong momentum:

• Layer 2 expansion solutions are being widely adopted.
• The total locked value in decentralized finance ( DeFi ) is steadily recovering.
• The market expects that a spot ETH ETF may be launched in the future, which could unleash huge institutional demand.

Historically, when Bitcoin's dominance peaked, funds began to rotate into Ethereum, then into other mainstream Crypto Assets, and finally into smaller potential coins. This is a pattern we have observed in the past few bull runs and is likely to repeat in 2025.

Therefore, if you are paying attention to the market, do not just look at the Bitcoin price, but also pay attention to the flow of funds afterwards.

This is not the peak

In fact, this does not look like the peak of the market, but rather like the midpoint. The next round of Crypto Assets bull run is not a question of "whether" it will happen, but rather "when" it will happen.

The fundamentals are stronger than ever before. The macro environment has created a favorable situation. Most people are still not fully aware of the changes that are happening.

If you have been waiting for the perfect entry point, remember this: 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 inevitably experience fluctuations. However, if you take a long-term view and make wise arrangements, Bitcoin and other Crypto Assets still offer life-changing upward potential.