The Nasdaq’s surge in value is breaking records, with a market cap relative to the U.S. M2 money supply that has hit a record 176%. Global markets commentator The Kobeissi Letter summed it up in three words:

“This is insane.”

The Nasdaq’s ‘insane’ market cap

As of August 2025, the Nasdaq’s market capitalization shatters the previous Dot-Com Bubble peak by approximately 45 percentage points. Simultaneously, the ratio of Nasdaq’s market cap to U.S. GDP has reached a historic 129%, almost double the highs of March 2000. These levels are raising both eyebrows and alarm on Wall Street.

M2 money supply encompasses all cash, checking deposits, and easily accessible savings, essentially, the “liquid” funds in the U.S. financial system. When the Nasdaq’s total value dwarfs this pool, it means that market valuations are galloping far ahead of the base layer of money underpinning the economy.

In previous cycles, stock market rallies were ultimately anchored by available liquidity. Surpassing the M2 money supply by such a wide margin illustrates an unprecedented disconnect between financial markets and real-world cash or credit growth.

Comparisons with the Dot-Com Bubble are apt: in 2000, the Nasdaq’s meteoric gains ended with a collapse when excess speculation far outpaced money supply and economic fundamentals. Today’s ratios, however, are well beyond those former highs, stoking fears of an even larger asset bubble.

Implications: What could happen next?

When stock valuations become untethered from underlying money growth, markets are more susceptible to sharp and painful corrections. As history showed after the Dot-Com peak, sentiment can turn quickly, and the subsequent cascade can erase trillions in market value overnight.

Today’s surge is heavily concentrated in a handful of giant tech firms, especially those leading AI innovation. This means a downturn in just a few names could spill over into the entire market, intensifying volatility.

With stock values so far above liquid cash levels, any shift in risk appetite, interest rates, or a tightening of credit could drain liquidity from equities fast. Such mismatches magnify systemic risk, as market participants scramble for cash in a sudden downturn.

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Central banks may find themselves pressured to inject more liquidity or risk triggering a deep correction. However, with M2 already at record levels and inflation concerns still present, policy options are limited.

Broader implications for Bitcoin and crypto

A sharp correction in tech equities often sparks a search for non-correlated assets. Bitcoin, with its fixed supply and decentralized nature, is frequently seen as a “digital gold” hedge against both equity bubbles and financial system stress. After major equity shocks in the past, Bitcoin and gold have often seen inflows as alternative stores of value.

Crypto is not immune to market-wide shocks, however. During the COVID crash and after the Dot-Com bust, investors also sold Bitcoin and other risk assets in the initial wave of panic. Thin crypto market liquidity can amplify these sudden swings.

If a market meltdown forces funds and institutions to raise cash, there could be short-term selling pressure for Bitcoin and crypto, especially given recent inflows and speculative positions in ETFs. However, each major crisis tends to inspire renewed interest in alternative financial systems and decentralized assets in the recovery phase.

As the Nasdaq outpaces the real economy, regulators are watching for imbalances. Both securities and crypto market rules could be tightened in response to market volatility or perceived excess.

Never before has the market value of America’s top tech stocks so dramatically outstripped both the money supply and the size of the economy itself. Investors should proceed wth caution and remember the lessons of bubbles past.

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Since the beginning of June, Dogecoin’s performance has been quite bearish as the largest dog-themed meme coin struggles to undergo a rally and recover the $0.20 price level. DOGE may be witnessing negative movements, but this period could be the calm before the storm, with several predictions about a major rally to uncharted territory emerging.

A Wild Ride For Dogecoin To A New High Ahead

While Dogecoin is struggling to gain upward traction, this waning period could be the foundation to something big in the near future. Javon Marks, a crypto analyst and trader, has delved into the current price action, revealing that DOGE will experience a massive spike in this bull market cycle.

The expert’s prediction is based on previous price trends that preceded a surge to a new all-time high and market top for the meme coin. After a period of prolonged consolidation within the 0 and 1 Fibonacci levels, DOGE appears to be exhibiting a similar trend, increasing its potential to undergo a major upward move this cycle to a new peak.

Considering the reappearance of the bullish price trend, Javon Marks is confident that a similar result may unfold this cycle. This setup implies that Dogecoin has a high likelihood of witnessing a notable run, with the analyst putting his target at the $2.28 level.

It is important to note that the $2.28 target is positioned at the 1.618 Fibonacci level, which DOGE has often met in each bull cycle. During the first bull cycle, the meme coin reached this point and surpassed it. The same was witnessed in the second bull cycle.

Given that Dogecoin has historically surpassed this level, it increases the chances of the trend repeating in this cycle. Thus, Javon Marks anticipates a continuation of the impending surge beyond the $2.28 milestone this bull cycle. 

Key Indicators Supporting DOGE’s Bullish Journey

With bullish on-chain signals, technical setups, and improving market dynamics, Dogecoin is likely to rebound soon and rally strongly. João Wedson, a verified author and on-chain analyst, has outlined key indicators that signal robust fundamentals for DOGE to push higher.

The first aspect to consider is the 500-day Aggregated Liquidation Level. During DOGE’s last major drop, this metric shows a huge amount of liquidity, valued at over $380 million, was caught in the $0.50 zone. “Historically, when shorts pile up, DOGE tends to accumulate and surge months later,” he added.

Wedson drew attention to the DOGE/BTC pair, which is now approaching critical support that is comparable to the setup before the 2021 rally, when Dogecoin attracted more interest than BTC. In addition, the Meme Index, which consists of the 16 biggest meme coins, exhibits early indications of recovery following a severe downturn.

Lastly, Wedson has highlighted the notable growth of the overall meme coin market cap this cycle over the 2021 cycle. Despite this rise in market cap, meme coins’ Open Interest and daily volume are valued at $3.2 billion and $12 billion, respectively, which remains low compared to Bitcoin and Ethereum.

Featured image from Getty Images, chart from Tradingview.com

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