River Analysis: Bitcoin Represents 1.7% of Global Money Supply

A report from River, a Bitcoin-focused financial services firm, indicates that Bitcoin now constitutes about 1.7% of the total global money supply, which is estimated at around $138 trillion. This figure combines the global fiat M2 money supply of approximately $112.9 trillion and gold's market capitalization of about $25.1 trillion.

At its peak, Bitcoin's market cap reached around $2.4 trillion, translating to a 1.7% share of the global money basket. However, fluctuations in Bitcoin's price have slightly reduced this figure to approximately 1.66% as of the latest reporting.

On the supply side, Bitcoin's daily issuance is currently about 450 BTC, while businesses are absorbing around 1,755 BTC daily, indicating a growing demand that outpaces new supply. River attributes this increasing adoption to the ongoing monetary expansion by central banks, which erodes the purchasing power of fiat currencies.

Additionally, River's research highlights that only about 825,000 individuals globally own at least one whole Bitcoin, representing roughly 0.01% of the world's population. This contrasts sharply with the approximately 60 million millionaires worldwide, suggesting a highly concentrated ownership of Bitcoin.

Furthermore, River's analysis suggests that a 10% allocation to Bitcoin has historically outperformed traditional investment strategies, such as the classic 60/40 stock-and-bond portfolio.

New Insights on Bitcoin ETFs

On September 3rd, Bitcoin (BTC) spot exchange-traded funds (ETFs) experienced their largest daily inflow in nearly eight months, totaling $730.87 million. Analyst TedPillows noted that previous instances of daily ETF inflows exceeding $700 million were followed by local tops in Bitcoin's price.

In the last 30 days, US spot ETFs contributed approximately 42.8K BTC in net flows, representing 41% of the total net capital inflow of ~105K BTC equivalent.

Pseudonymous analyst DonAlt believes Bitcoin is currently in a bullish phase, predicting a potential surge to $90,000 before any significant pullback occurs. He suggests that deep pullbacks are uncommon in a bullish market, and any corrections are likely to be shallow.