BTC nears $116,000 after Powell hints at monetary easing during Jackson Hole speech
Bitcoin (BTC) has grown to account for nearly 1.7% of global money, marking a significant milestone in its 16-year history as a decentralized asset. The data, compiled by River, compared Bitcoin’s $2.4 trillion market capitalization against a basket of $112.9 trillion in fiat currencies and $25.1 trillion in hard money assets like gold.
Currently, Bitcoin’s market cap stands at approximately $2.29 trillion, slightly lowering its share to 1.66% of global money. Despite this, analysts view the achievement as a key indicator of Bitcoin’s growing role as a monetary asset amid global economic uncertainty.
“In 16 years, Bitcoin went up to 1.7% of global money,” River stated, emphasizing the rapid pace of adoption compared to traditional asset classes.
Fed Signals Rate Cuts, BTC Price Responds
The market shift coincides with a keynote address from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium. Powell signaled that the Fed is prepared to ease monetary policy, saying:
“Our policy rate is now 100 basis points closer to neutral than it was a year ago. 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 the remarks, Bitcoin surged over 2%, reaching nearly $116,000, as investors anticipated a more accommodative monetary environment. According to the CME Group, 75% of market participants expect a 25 basis point rate cut in September, reinforcing bullish sentiment for digital assets.
Why It Matters
Central banks continue to expand money supply, eroding the purchasing power of fiat currencies and pushing investors toward hard money alternatives like Bitcoin and gold. Experts note that crypto assets historically perform well during periods of monetary expansion, correlating with higher global liquidity levels.
“Bitcoin’s rise as a percentage of global money reflects a shift toward decentralized assets as trust in fiat systems declines,”According to BITX analyst.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.