Bitcoin News Today: Bitcoin Claims 1.7% of Global Money Amid Fed Signals and Hard Asset Shift

Bitcoin's market capitalization has reached approximately 1.7% of the global money supply, a metric encompassing the aggregate M2 money supply of all major fiat currencies, significant minor currencies, and gold's market capitalization, according to River, a Bitcoin financial services company. This figure marks a significant milestone for Bitcoin, which has grown to a market capitalization of $2.29 trillion from its early inception in 2009. River noted that the global money supply includes $112.9 trillion in fiat currencies and $25.1 trillion in hard money, excluding silver, platinum, and exotic metals like palladium.

The rise of Bitcoin and gold as hard money alternatives has accelerated as central banks globally engage in monetary expansion through quantitative easing and excessive money printing, eroding the purchasing power of fiat currencies. This trend has led to a growing interest in assets perceived to retain value better than traditional fiat currencies. Bitcoin's share in this context reflects a broader shift in investor preferences towards hard money amid concerns over inflation and economic instability.

In a pivotal speech at the Jackson Hole Economic Symposium in Wyoming, Federal Reserve Chair Jerome Powell signaled a potential rate cut in the near future. Powell noted that the Fed's policy rate is now 100 basis points closer to neutral compared to a year ago. The stability of the unemployment rate and other labor market indicators provides the Fed with the flexibility to consider adjustments to its policy stance. In response to Powell's comments, Bitcoin's price surged by over 2% to approximately $116,000 per BTC. This reaction underscores the market's anticipation of a more accommodative monetary policy and the potential benefits for digital assets.

The interplay between Bitcoin's market dynamics and monetary policy is a topic of significant interest among investors and analysts. The correlation between global liquidity and the price of Bitcoin is evident, with periods of monetary expansion often coinciding with increased demand for digital assets. The Chicago Mercantile Exchange (CME) Group data indicates that 75% of investors now anticipate a 25 basis point rate cut in September. This expectation is driven by Powell's signals and the broader economic environment marked by inflation concerns and labor market uncertainties.

Analysts at WisdomTree suggest that the structural risks within the traditional financial system are prompting a reevaluation of investment strategies, with hard assets like Bitcoin and gold gaining prominence. The base scenario projected by WisdomTree anticipates a continuation of the current dynamics, with Bitcoin potentially reaching $250,000 by 2030. This projection is based on assumptions of mild inflation, moderate real GDP growth, and a steady expansion of global liquidity. Gold is also expected to rise to approximately $4,000 per ounce over the same period, reflecting a 3.7% annualized growth rate.

The evolving landscape of global finance highlights the increasing importance of hard assets and the potential for Bitcoin to play a significant role in the future of money. As central banks navigate the challenges of inflation and economic stability, the demand for alternative stores of value is likely to remain a focal point for investors and policymakers alike.

Source: [1] Market capitalization of Bitcoin (BTC) from April 2013 to January 7, 2025 (in billion U.S. dollars) (https://www.statista.com/statistics/377382/bitcoin-market-capitalization/) [2] BTC climbed to 1.7% of global money before Fed chair signals rate cut (https://cointelegraph.com/news/btc-1-7-global-money-fed-chair-signals-rate-cut) [3] Bitcoin/Gold: a duo with a future (https://www.leonteq.com/news-and-media/news/crypto-news/2025/etp-plus-adaptivv-bitcoin-gold-etf-index) [4] Bitcoin and Global Money Supply: How Strong Is the Connection? (https://cryptodnes.bg/en/bitcoin-and-global-money-supply-how-strong-is-the-connection/) [5] Powell suggests rate cuts are coming — but not because ... (https://www.cnn.com/business/live-news/fed-powell-jackson-hole) [6] Powell indicates conditions 'may warrant' interest rate cuts as Fed proceeds carefully (https://www.cnbc.com/2025/08/22/powell-indicates-conditions-may-warrant-interest-rate-cuts-as-fed-proceeds-carefully.html) [7] Powell hints at long-awaited rate cut but admits Fed in 'challenging situation' (https://www.pbs.org/newshour/show/powell-hints-at-long-awaited-rate-cut-but-admits-fed-in-challenging-situation)