- Bitcoin’s market cap hits 1.7% amid Fed rate cut signs, impacting markets.
- Bitcoin benefits from Fed remarks, boosting its global dominance.
- Institutional interest grows as Bitcoin seen as stable.
Bitcoin’s market cap has surged to 1.7% of the global money supply after Federal Reserve Chair Jerome Powell indicated potential rate cuts during the Jackson Hole summit in August 2025.
This shift underscores Bitcoin’s growing role as a hedge against economic volatility, reflected in immediate price gains and increased investor interest.
The Bitcoin market cap has reached 1.7% of the global money supply, coinciding with Federal Reserve Chair Jerome Powell hinting at a possible rate cut. This monetary shift was highlighted during a significant Jackson Hole summit. Jerome Powell, the longstanding Fed Chair, signaled a possible rate cut at the summit, impacting digital and global markets. This indication aligns with Bitcoin’s market cap reaching new heights, according to data from River.
“Bitcoin’s market capitalization now stands at approximately $2.35 trillion, which equates to 1.7% of the global M2 money supply (about $140 trillion).”
Bitcoin’s rise has notably affected the financial markets, with prices soaring post-Powell’s signal. Institutional investors appear to be reallocating funds, boosting Bitcoin’s market dominance. In the financial sphere, corporations like SpaceX are increasing Bitcoin holdings as an inflation hedge. The remarks by Powell have strengthened Bitcoin’s image as “digital gold” among institutional circles.
Historically, Fed’s dovish signals have led to Bitcoin surges. This trend continues as Bitcoin claims a larger share of global money, outperforming altcoins like Ethereum under growing competitive pressure. The potential for fiscal policy shifts and increased crypto regulation remain. Historical trends indicate Bitcoin may continue to grow in global financial influence with increased institutional investments driving regulatory interest.
