In a bold testament to its growing influence, Bitcoin now represents approximately 1.7% of all global money, signaling its ascension from obscure digital novelty to heavyweight financial contender.
Bitcoin's Expanding Share of the Money Supply
According to data from River—a financial services firm specializing in Bitcoin—the cryptocurrency's market capitalization has grown steadily over 16 years, reaching a valuation sizable enough to command atop the global monetary landscape. Within the calculation, River compared Bitcoin’s market cap—around $2.4 trillion at its August peak—to a staggering $112.9 trillion in fiat currency supply (including major and minor currencies) and $25.1 trillion in hard money such as gold (excluding silver, platinum, and palladium)
Even accounting for recent dips, with Bitcoin's market cap settling near $2.29 trillion, its share remains impressively high—hovering around 1.66% of the global money pool.
Fed Signals Change: Monetary Policy Softens Ahead
At the Federal Reserve’s Jackson Hole symposium, Chair Jerome Powell offered a subtle but clear hint that interest rate cuts could be on the near horizon. Powell noted that the Fed’s policy rate is now “100 bps closer to neutral than it was a year ago,” adding that stable labor data gives the Fed “room to proceed carefully” with potential policy adjustments.
The financial markets reacted swiftly—Bitcoin surged over 2%, touching approximately $116,000 per BTC in response to Powell’s dovish tone
Why This Matters—and Why You Should Care
| Element | What It Means |
|---|---|
| Bitcoin’s Rising Share | Reflects growing institutional and investor trust in crypto as a store of value alongside traditional fiat and gold. |
| Fed Policy Shift | A rate cut or easing monetary conditions often supports higher liquidity—tailwinds that benefit assets like Bitcoin. |
| Macro Momentum | With caution mounting around inflation and central bank policy, non-sovereign assets like Bitcoin are capturing broader investor attention. |
Final Thought: A Turning Tide for Money?
Bitcoin’s expansion to 1.7% of global money isn’t just a statistic—it’s a statement. Against a backdrop of expanding fiat supply and cautious central bank policymaking, Bitcoin is solidifying its narrative as both a macro hedge and a legitimate monetary asset.
This moment marks a crossroads: whether you're a long-time hodler or a curious newcomer, the evolving dynamics of money, policy, and digital assets are reshaping how we define value.
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