Bitcoin has officially reached a market capitalization equivalent to 1.7% of the global M2 money supply, marking a significant milestone in its evolution as a digital asset and a macroeconomic indicator. The global M2 money supply is currently valued at around $140 trillion, with Bitcoin’s market cap reaching $2.35 trillion, up from 1.56% in May 2025 [1][2][3]. This increase reflects a growing acceptance of Bitcoin among institutional investors and signals a broader shift in how traditional financial systems view digital assets.
The rise of Bitcoin to this level underscores its increasing role as a store of value and hedge against inflation. Analysts such as Raoul Pal and Michaël van de Poppe have pointed out that Bitcoin’s price movements are closely tied to global liquidity trends, with Pal noting that up to 90% of Bitcoin’s price could be driven by rising global liquidity [4]. This correlation highlights Bitcoin’s unique position in the financial system, where it is not only a speculative asset but also a reflection of broader monetary policy changes.
Institutional adoption has further accelerated Bitcoin’s integration into the financial mainstream. Companies like SpaceX have joined the ranks of major Bitcoin holders, with its portfolio exceeding $1 billion in digital assets [5]. These developments have reinforced the perception of Bitcoin as an alternative reserve asset, particularly in times of macroeconomic uncertainty. On-chain data also shows that Bitcoin experienced a 150% price surge in 2025, demonstrating its responsiveness to changing economic conditions [1].
Bitcoin’s growing market influence has also translated into its ranking among global assets. The cryptocurrency has surpassed Google in terms of market capitalization, becoming the fifth-largest asset globally [6]. This achievement is attributed to renewed institutional interest and a surge in inflows into Ethereum-based ETFs, though Bitcoin’s dominance in the crypto space is being increasingly challenged by other digital assets.
The milestone of 1.7% of global M2 is not just a numerical achievement but a sign of Bitcoin’s increasing relevance in the global financial system. Analysts suggest that its limited supply and perceived store-of-value properties make it a compelling alternative to traditional monetary assets [1][2]. Although recent volatility has seen Bitcoin temporarily dip below its peak of $124,000, the overall trend remains bullish, with market participants anticipating continued growth in the coming months [3][5].
Source:
[1] Cryptos – ⚡ LATEST: Bitcoin now represents 1.7% of global money supply (Aug 2025). River | Facebook.
(https://m.facebook.com/cryptosrus/photos/-latest-bitcoin-now-represents-17-of-global-money-supply-aug-2025-source-river/134****023932696/)
[2] Trend Scalez – X.
(https://x.com/TrendScalez/status/1956057423992496568)
[3] Latest Crypto News, August 14 – Bitcoin Price Hits A New ATH. 99Bitcoins.
(https://99bitcoins.com/news/altcoins/live-latest-crypto-news-august-14-bitcoin-price-hits-a-new-ath-over-124k-next-crypto-to-explode/)
[4] Bitcoin smashes record above $124K. Bitget.
(https://www.bitget.com/news/detail/12560604913578)
[5] Bitcoin: 1.7% of global money supply… just getting started. Instagram.
(https://www.instagram.com/p/DNXFMWGtaW6/)
[6] Bitcoin Dominance Drops as ETH Marks Its First All-Time High. Coinpedia.
(https://coinpedia.org/press-release/turn-20000-into-1-million-with-best-crypto-presale-of-altcoin-season/)
