Recently, Bitcoin has crossed an important threshold, reaching 1.7% of the global money supply, indicating a growing interest in decentralized assets.
The Growing Influence of Bitcoin in the Global Economy
The American company River published a comparative analysis of Bitcoin's market capitalization and the total volume of global money. Bitcoin reached a figure of $2.29 trillion, which constitutes 1.66% of the total money supply of $138 trillion comprising fiat currencies and gold. This value indicates a shift in the perception of traditional currencies and interest in digital assets: 'In 16 years, Bitcoin has risen to 1.7% of global money.' — River.
Jerome Powell's Speech and Its Impact on Bitcoin
This figure became relevant following the speech of the Chairman of the Federal Reserve, Jerome Powell, at the Jackson Hole Symposium. He noted the need for caution in adjusting monetary policy, which was interpreted by the market as a signal for potential rate cuts. As a result, the price of Bitcoin increased by over 2%, peaking around $116,000.
Bitcoin's Outlook Amid Changing Monetary Policy
Changes in US monetary policy raise questions about Bitcoin's future in the financial ecosystem. Given that market participants anticipate a loosening of monetary policy, Bitcoin may reinforce its role as a liquidity-sensitive asset. This also suggests that its interactions with traditional currencies and its status as a store of value will continue to evolve.
Thus, the rise in Bitcoin's share of the global money supply, along with its response to changes in monetary policy, indicates its growing significance in the world financial landscape.
