Bitcoin has grown to represent approximately 1.7% of global money supply, according to data from Bitcoin financial services firm River.
The calculation compared Bitcoin’s market capitalization—recently about $2.4 trillion—against a basket of major fiat currencies totaling $112.9 trillion and $25.1 trillion in gold, intentionally excluding silver and other minor metals.
As of the latest figures, with Bitcoin’s market cap at roughly $2.29 trillion, its share adjusts to about 1.66% of global money.
Central banks and monetary expansion
River noted the rapid ascent:
“In 16 years, Bitcoin went up to 1.7% of global money.”
This expansion comes as central banks continue to increase fiat currency supplies, eroding purchasing power and prompting investors to seek alternatives like bitcoin and gold.
Global M2 money supply growth has paralleled these shifts, with hard money assets increasingly seen as a hedge against inflation.
Fed signals rate cuts
United States Federal Reserve chairman Jerome Powell addressed the Jackson Hole Economic Symposium and indicated that interest rates are likely to be cut in the near future. Powell stated:
“Our policy rate is now 100 basis points (BPS) closer to neutral than it was a year ago, and the stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance.”
Following Powell’s remarks, the bitcoin price surged over 2%, reaching around $116,000 per BTC.
Market data from the CME Group shows that 75% of investors expect a rate cut of 25 basis points in September.
Bitcoin’s correlation with liquidity
Periods of monetary expansion often correspond with bitcoin price rallies, as the asset tracks global liquidity trends.
Bitcoin and gold’s rising share of global wealth comes amid persistent inflation and continued central bank easing.
