Bitcoin (BTC) climbs to 1.7% of global currency before Fed chairman hints at rate cuts
Against the backdrop of global central banks' continued expansion of balance sheets and the continued dilution of fiat currency purchasing power, Bitcoin's share in the global monetary system has steadily increased.
According to the latest data released by Bitcoin financial company River, Bitcoin (BTC) currently accounts for about 1.7% of the global currency. This statistics cover the sum of M2 money supply in major countries, some minor currencies and the market value of gold.
"After 16 years of development, Bitcoin has entered the global monetary structure, accounting for 1.7%," River pointed out. The company compared Bitcoin’s market value with a $112.9 trillion fiat pool and a $25.1 trillion hard currency asset, which only contains gold and does not include other precious metals such as silver, platinum and palladium.
The ratio is based on the peak value of Bitcoin’s market value of $2.4 trillion - a figure that occurred in early August. As of now, Bitcoin's market value has fallen to about US$2.29 trillion, bringing its share of global currency to about 1.66%.
Comparison chart of Bitcoin market value and global currency total. Source: River
As central banks in various countries depreciate currencies through large-scale printing of money, weakening public confidence in fiat currencies, more and more investors turn to anti-inflation assets. Against this background, Bitcoin and gold are continuing to absorb value from the traditional monetary system and occupy a larger market share.
Fed chairman sends out a signal of interest rate cuts, indicating a new round of monetary easing begins
Federal Reserve Chairman Jerome Powell delivered a speech at the Jackson Hall Economic Policy Seminar in Wyoming on Friday, clearly sending signals of an upcoming rate cut and further expansion of money supply. Powell said:
"The current policy interest rate is close to the neutral level of 100 basis points (BPS) compared to a year ago. The stable performance of the labor market, including indicators, including unemployment, gives us greater flexibility in adjusting our policy stance."
Affected by this remark, the price of Bitcoin responded quickly, rising more than 2% on the same day, once hitting a historical high of US$116,000 per coin.
Federal Reserve Chairman Jerome Powell delivered a speech at the Jackson Hall conference. Source: Kansas City Federal Reserve
Historical data show that Bitcoin and other crypto assets usually perform strongly in the liquidity expansion cycle, and their price trends are highly positively correlated with the degree of global monetary easing.
According to the Fed's observation tool of the Chicago Mercantile Exchange (CME), up to 75% of market participants are currently expected to announce a 25 basis point rate cut at the September interest rate meeting.
The above is the detailed content of Bitcoin (BTC) climbs to 1.7% of global currency before Fed chairman hints at rate cuts. For more information, please follow other related articles on the PHP Chinese website!

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