Bitcoin’s market capitalization has dropped to around 1.66% of the global money supply, from a peak of 1.7%, according to River, a financial services company. The company compared Bitcoin’s $2.4 trillion market cap to a $112.9 trillion basket of fiat currencies and $25.1 trillion in hard money.
As central banks inflate their fiat currencies through excessive money printing, investors are turning to hard money alternatives like Bitcoin. This trend is driven by the destruction of purchasing power and the desire for stable storeholds of value.
US Federal Reserve Chairman Jerome Powell signaled impending interest rate cuts and continued monetary expansion during a keynote address at the Jackson Hole Economic Symposium. The news sparked a 2% surge in Bitcoin’s price, reaching $116,000 per BTC on Friday.
Bitcoin tends to appreciate during periods of monetary expansion, as digital assets correlate with global liquidity levels. 75% of investors now anticipate an interest rate cut in September, according to data from the CME Group.
Source: https://cointelegraph.com/news/btc-1-7-global-money-fed-chair-signals-rate-cut