Bitcoin (BTC) now makes up approximately 1.7% of global money, a statistic that incorporates the total M2 money supply data from primary fiat currencies, notable minor currencies, and the market capitalization of gold, according to River, a financial services company focused on Bitcoin.
“In 16 years, Bitcoin has risen to represent 1.7% of global money,” River stated. The company evaluated Bitcoin’s market cap against a $112.9 trillion mix of fiat currencies and $25.1 trillion in hard assets, excluding silver, platinum, and rare metals like palladium.
The analysis presumes Bitcoin has a market capitalization of $2.4 trillion, a figure it surpassed earlier in August. However, the current market cap of BTC is roughly $2.29 trillion, lowering its share of global money to about 1.66% at this point.
As central banks globally inflate their fiat currencies through excessive printing, Bitcoin and gold increasingly capture a larger segment of the global money market, diminishing purchasing power and encouraging investors to seek hard asset alternatives.
Related: Investor sentiment shifts to Greed as Bitcoin and Ether rise following Fed speech
US Federal Reserve chair hints at upcoming rate cuts amid ongoing monetary expansion
Jerome Powell, chairman of the United States Federal Reserve, addressed the Jackson Hole Economic Symposium in Wyoming on Friday, indicating potential interest rate reductions and further monetary expansion. Powell remarked:
“Our policy rate is now 100 basis points (BPS) closer to neutral than it was one year ago, and the stability in unemployment rates and other labor market indicators enables us to proceed cautiously as we evaluate any adjustments to our policy approach.”
Following Powell’s remarks, Bitcoin’s price surged over 2%, reaching approximately $116,000 per BTC on Friday.
During periods of monetary expansion, Bitcoin and various cryptocurrencies usually see an appreciation in value, as the prices of digital assets remain linked to global liquidity conditions.
Currently, 75% of investors expect a 25 basis point interest rate cut in September, based on data from the Chicago Mercantile Exchange (CME) Group.
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