Is Bitcoin's Next Bull Run Already Underway?

The question of whether Bitcoin's next bull run is already underway has moved from speculative debate to a pressing investment imperative. The evidence, drawn from a confluence of macroeconomic tailwinds, institutional adoption, and structural shifts in global capital flows, suggests that the conditions for a sustained rally are not only present but accelerating.

Institutional Adoption: A Catalyst for Legitimacy and Liquidity

The most transformative development in 2025 has been the institutional embrace of Bitcoin. U.S. spot Bitcoin ETFs, which attracted $18.4 billion in inflows during the first five months of the year, have become a cornerstone of this shiftTrack Bitcoin ETF Flows and Supply with Precision^[1]. By September 9, 2025, BlackRock's iShares Bitcoin Trust (IBIT) alone recorded a $169.3 million net inflow, despite outflows from other funds like Fidelity's FBTC and ARK 21Shares' ARKBBTC ETF Flows 2025-09-09: $23M Net Inflow as IBIT $169.3M Offsets ARKB and FBTC Outflows^[2]. Collectively, ETFs now hold 821,000 BTC—3.9% of the total supply—signaling a structural reallocation of capital into cryptoBitcoin Statistics 2025: Market Insights, Adoption Trends, etc.^[3].

This institutional adoption has normalized Bitcoin as an asset class, bridging the gap between traditional finance and digital assets. As one analyst noted, “Bitcoin ETFs have transformed the narrative from speculative risk to portfolio diversification”Institutional Adoption and Correlation Dynamics: Bitcoin's Evolving Role in Financial Markets^[4]. The result? A 75% reduction in Bitcoin's realized volatility compared to earlier cycles, as institutional liquidity dampens price swingsThe Increasing Impact of Bitcoin's Ancient Supply^[5].

Macroeconomic Tailwinds: Liquidity, Yields, and Dollar Weakness

Bitcoin's price dynamics in 2025 are inextricably linked to global liquidity trends. The digital asset maintains a long-term correlation of 0.94 with global money supply, meaning rising liquidity directly supports higher pricesBitcoin And Global Liquidity: How Money Supply Shapes BTC's Price^[6]. This year, global M2 growth has continued unabated, with central banks—despite nominal tightening—maintaining accommodative policies to offset fiscal strains.

The U.S. Dollar Index (DXY), a critical barometer for Bitcoin's performance, has weakened by 10.7% year-to-date, marking its worst first-half performance in over 50 yearsWhere is the U.S. dollar headed in 2025?^[7]. This decline, driven by waning foreign demand for Treasuries and a deteriorating U.S. fiscal position, has amplified Bitcoin's appeal as a hedge against dollar devaluation. Meanwhile, U.S. 10-year Treasury yields, while elevated at 4.08% as of September 2025, reflect not economic strength but fiscal stress—worsening deficits and a downgraded sovereign rating by Moody'sThe divergence between US treasury yields and the dollar index a crisis of confidence^[8]. The divergence between rising yields and a weak dollar has created a unique environment where Bitcoin thrives as both an inflation hedge and a beneficiary of capital flight from traditional safe havens.

Cross-Border Credit and Bitcoin's Global Utility

Bitcoin's role in global trade further underscores its macroeconomic relevance. By 2025, cross-border B2B transactions using cryptocurrency accounted for 5.4% of global trade settlement valueCryptocurrency Adoption by Country Statistics 2025^[9]. This adoption is particularly pronounced in emerging markets, where Bitcoin serves as a hedge against unstable local currencies. For instance, in countries like Nigeria and Malaysia, Bitcoin's price volatility has been inversely correlated with macroeconomic performance, as businesses and investors turn to crypto to preserve purchasing powerForeign exchange market disequilibrium, bitcoin price volatility, and macroeconomic performance: Comparative analysis of selected African and ASEAN countries^[10].

The interplay between cross-border credit expansion and Bitcoin demand is not merely speculative. As global liquidity expands, so does the incentive for institutions and corporations to allocate capital to assets that outperform fiat. MicroStrategy's treasury strategy—pioneering corporate Bitcoin holdings—has been replicated by firms allocating billions to Bitcoin, framing it as a strategic counterweight to inflation and geopolitical riskThe Risks and Rewards of Bitcoin Treasury Strategies in 2025^[11].

Scarcity and the Bull Case: A Model for Long-Term Appreciation

Bitcoin's scarcity-driven value model remains a foundational argument for its long-term potential. With the 2024 halving reducing block rewards, the rate of new supply has slowed, while “ancient supply” (coins held for over 10 years) now outpaces new issuanceFBS Analyzes Cryptocurrency Market Trends in H1 2025 and Outlines Key Drivers H2^[12]. This structural scarcity, combined with institutional demand, has pushed price targets into the $200,000–$210,000 range for 2026Bitcoin Q1 2025: Historic Highs, Volatility, and Institutional Moves^[13].

Technical indicators reinforce this bullish case. The Money Flow Index (MFI) suggests the market is still in the active phase of the bull run, while historical patterns indicate a peak 200–500 days post-halving—pointing to a potential cycle top in late 2025 to early 2026When Will Bitcoin Peak? 2025 Forecasts, Market Analysis^[14].

Strategic Entry: Aligning with Historical Bullish Patterns

For investors, the alignment of macroeconomic tailwinds and institutional adoption creates a compelling case for strategic entry. Bitcoin's correlation with the Nasdaq 100 and S&P 500—peaking at 0.87 in 2024—reflects its integration into traditional financial marketsInstitutional Adoption and Correlation Dynamics: Bitcoin's Evolving Role in Financial Markets^[15]. This correlation, coupled with ETF-driven demand, suggests that Bitcoin is no longer a standalone speculative asset but a core component of diversified portfolios.

Conclusion

Bitcoin's next bull run is not a question of if but when. The interplay of institutional adoption, global liquidity expansion, dollar weakness, and structural scarcity has created a self-reinforcing cycle of demand and price appreciation. For investors, the challenge lies not in predicting the peak but in positioning early enough to capture the full magnitude of this paradigm shift.