Bitcoin market capitalization has achieved a historic milestone – today it is about 1.7% of the world money supply, results from the data of River, dealing with financial services. Although the correction is currently underway, we can assume that this is not the last word BTC.
Bitcoin is fighting for his position on the market
Despite the fact that Bitcoin was initially a toy for geeks, libertarians and Cypherpunk, today is among the most important assets in the world. It is combined with the largest companies and values like gold. In the companiesmarketcap ranking, it ranks 7th place in terms of capitalization, and it is ahead of: gold, Nvidia, Microsoft, Apple, Alphabet and Amazon. The cryptocurrency is, among others silver. Ethereum is in position 23, just behind Mastercard.
Currently, BTC market capitalization is about 1.7% of the global money supply. Everything happens at a time when the market value of the cryptocurrency reached a level of approx. USD 2.2 trillion. The global money market is a matter of approx. 112.9 trillion USD in fiduci currencies and USD 25.1 trillion in hard assets such as gold.
Bitcoin didn’t say the last word?
Everything coincides with the Friday speech of the Fed President Jerome Powell during the economic symposium in Jackson Hole, during which the head of the Fed signaled the possibility of future interest rate reductions. This has fueled the last increases on the cryptocurrency market, although the correction of these movements has been going on since Sunday and we see declines.
If the Fed actually starts cutting percentage rates, Bitcoin can gain it, because reductions mean an increase in the circulation of money in the economy, which will translate into “transferring” capital to risky assets and generally “pulling” money out of banks (low percentage rates mean that it is not profitable to deposit capital on a bank account).
Bitcoin is also increasingly seen as digital gold. And this despite the fact that the founding of its creator, Satoshi Nakamoto, was to create internet money, with limited supply and providing anonymous capital transfers. The return of the Fed to foot cuts and quantitative loosening can make the BTC position on the market further strengthen in the coming months and years.
