Bitcoin Reaches 1.7% of Global Money Supply Before Fed Hints at Rate Cuts
Powell’s Jackson Hole speech sparks BTC rally as investors brace for looser monetary policy
Bitcoin’s market share of global money has climbed to roughly 1.7%, highlighting the asset’s growing role as a hedge against fiat currency debasement. The figure, based on M2 money supply data across major and minor currencies as well as gold’s market capitalization, was published by Bitcoin financial services firm River.
River noted that in just 16 years, Bitcoin has risen to a $2.4 trillion market cap at its peak this month, placing it alongside gold as a key alternative to fiat. Although BTC’s capitalization has since eased to around $2.29 trillion, it still accounts for nearly 1.66% of global money. The analysis excluded silver, platinum, and other precious metals from the comparison.
Fed Chair Signals Easing, BTC Surges Past $116K
Speaking at the Jackson Hole Economic Symposium, Federal Reserve chair Jerome Powell indicated that interest rate cuts are on the horizon, citing steady employment data and progress toward a “neutral” policy stance.
His remarks fueled a surge in Bitcoin’s price, which jumped more than 2% to roughly $116,000. Analysts point to Bitcoin’s correlation with global liquidity trends, noting that digital assets often benefit from expansive monetary policies.
According to CME Group data, three-quarters of investors now expect the Fed to deliver a 25 basis point rate cut in September – a move that could further strengthen Bitcoin’s appeal as hard money in an era of continued currency debasement.
