Bitcoin Climbs to ~1.7% of Global Money as Fed Chair Signals Rate Cuts
Bitcoin’s market share of the world’s liquid money has risen sharply, with one widely circulated estimate placing the cryptocurrency at about 1.7% of global money. That figure — produced by a Bitcoin-focused financial firm and repeated in market reports — compares Bitcoin’s market capitalization with a broad basket that includes major fiat M2 aggregates and gold, and highlights how hard-money allocations have grown as central banks expand liquidity.
The calculation rests on a few moving parts: an assumed Bitcoin market capitalization (which briefly topped roughly $2.4 trillion earlier in August) and an estimate of global fiat and hard-money pools. Because BTC’s market cap fluctuates with price, the share-of-global-money number shifts in real time — for example, a slightly lower market cap (about $2.29 trillion at one point) would reduce the percentage to roughly 1.66%. Independent market trackers show Bitcoin’s market cap in the low-to-mid trillions during the recent rally.
Market commentators say the rise reflects two broad forces: heavy liquidity in global financial systems and growing institutional demand for Bitcoin as a scarce, non-sovereign asset. Analysts who track M2 and other liquidity measures note that when central banks expand money supply, risk assets — including cryptocurrencies — often benefit as investors seek higher-return stores of value.
Macro developments pushed prices higher after a high-profile speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium, where he signaled that the Fed is moving closer to neutral policy and spoke in terms that markets read as opening the door to rate cuts and continued monetary expansion. The remarks triggered a swift rally in risk assets, and Bitcoin rose more than 2% on the session as traders priced in easier policy ahead.
Futures markets and Fed-watch tools showed a marked increase in investors’ odds of a September rate cut after Powell’s comments. Those market-implied probabilities rose substantially in the days after the speech, reinforcing a dovish market narrative that helped fuel inflows into rate-sensitive and speculative assets. Observers caution, however, that these are market-implied probabilities — not Fed commitments — and remain subject to incoming economic data.
Taken together, the data points paint a picture of a crypto market increasingly influenced by macro liquidity conditions: a larger absolute Bitcoin market cap, ongoing central-bank liquidity, and rising market expectations for policy easing have combined to lift Bitcoin’s headline market-share metrics and support higher prices. As always, those metrics move as price and money-supply estimates change, so the precise percentage share should be read as a snapshot rather than a fixed valuation.
