Finance

Bitcoin’s Ascent: Why Central Bank Moves and Powell’s Words Propel Crypto’s Rise Beyond 1.7%

August 23, 2025, 5:50 PM

A graph shows an upward trend, representing the increasing value of Bitcoin cryptocurrency.

As Bitcoin's value surges, investors and analysts alike watch the digital currency's fluctuating ascent. By Miami Daily Life / MiamiDaily.Life.

Executive Summary

Bitcoin’s share of global money has reached 1.7%, driven by central bank currency printing and reduced purchasing power.

Bitcoin’s price surged over 2% to approximately $116,000 per BTC following Federal Reserve Chairman Jerome Powell’s signal of impending interest rate cuts and continued monetary expansion.

The growth of Bitcoin and gold’s share of global money is attributed to central banks’ policies of inflating fiat currencies, prompting investors to seek “hard money” alternatives.

The Story So Far

Bitcoin’s increasing share of global money is largely driven by central banks’ ongoing policies of inflating fiat currencies through extensive money printing, which diminishes purchasing power and prompts investors to seek alternatives in “hard money” assets, a trend further exacerbated by signals from the US Federal Reserve Chairman regarding impending interest rate cuts and continued monetary expansion, which typically correlates with an appreciation in digital assets.

Why This Matters

Bitcoin’s increasing share of global money, driven by central bank currency printing and declining purchasing power, underscores a growing investor shift towards digital assets as a hedge against inflation. This trend is expected to be further accelerated by the Federal Reserve’s signals of impending interest rate cuts and continued monetary expansion, which could enhance Bitcoin’s appeal and price as a “hard money” alternative within the global financial system.

Who Thinks What?

Bitcoin financial services company River attributes Bitcoin’s growing share of global money to central bank currency printing and reduced purchasing power, prompting investors to seek “hard money” alternatives.

US Federal Reserve Chairman Jerome Powell signaled impending interest rate cuts and continued monetary expansion, which typically correlates with the appreciation of digital assets like Bitcoin.

Investors anticipate a 25 basis point interest rate cut by September and react to signals of monetary expansion by driving up Bitcoin’s price, seeing it as a “hard money” alternative amidst fiat currency inflation.

Bitcoin’s share of global money has reportedly climbed to 1.7%, according to analysis by Bitcoin financial services company River, which suggests this growth is driven by ongoing central bank currency printing and reduced purchasing power. This development comes as the price of Bitcoin surged over 2% to approximately $116,000 per BTC following a keynote address by US Federal Reserve Chairman Jerome Powell, where he signaled impending interest rate cuts and continued monetary expansion.

Bitcoin’s Growing Share

River’s analysis indicates that Bitcoin now accounts for a significant portion of global financial assets. The company calculated this by comparing Bitcoin’s market capitalization against a total of $112.9 trillion in fiat currencies and $25.1 trillion in hard money assets.

According to River, both Bitcoin and gold continue to claim a greater share of the global money supply. This trend is attributed to central banks’ policies of inflating fiat currencies through extensive money printing, which analysts argue diminishes purchasing power and prompts investors to seek alternatives in “hard money” assets.

Powell’s Signal and Market Reaction

The price of Bitcoin saw a notable increase following Chairman Powell’s speech, which outlined the prospect of future interest rate reductions. Digital assets like Bitcoin often tend to appreciate during periods of monetary expansion, reflecting a correlation with global liquidity levels.

Investor sentiment appears to align with the Federal Reserve’s signals. Data from the Chicago Mercantile Exchange (CME) Group indicates that 75% of investors are now anticipating a 25 basis point interest rate cut as early as September.

In summary, Bitcoin’s increasing share of global money is being tracked alongside central bank monetary policies, with recent signals of interest rate cuts from the US Federal Reserve chairman prompting a notable price surge for the cryptocurrency. The ongoing debate around fiat currency inflation and the search for hard money alternatives continues to influence investor behavior in the digital asset space.