M2 Ratio Hits 12-Year High

📋 Table of Contents

1. What Did ARK Invest Reveal?

2. Why Does the M2 to Bitcoin Ratio Matter?

3. What Could This Mean for Investors?

4. FAQs

✏️ Introduction

In its June 2025 Bitcoin Monthly Report, global asset manager ARK Invest has revealed a striking milestone for Bitcoin’s scarcity narrative. The ratio of global M2 money supply to Bitcoin supply has reached its highest point in 12 years — highlighting how Bitcoin’s fixed supply continues to contrast with expanding global liquidity.

📈 What Did ARK Invest Reveal?

According to ARK Invest’s official report (source), each Bitcoin now represents about $5.7 million of global M2 money supply. This is the highest ratio seen since Bitcoin’s early years.

Key details from the report:

• Record Ratio: The global M2 supply is growing, while Bitcoin’s issuance rate keeps dropping due to its halving cycle.

• Future Outlook: ARK expects this ratio to keep climbing as Bitcoin’s supply growth shrinks further.

• Scarcity Signal: With less new Bitcoin entering circulation, its role as a hedge against fiat currency dilution strengthens.

🔍 Why Does the M2 to Bitcoin Ratio Matter?

Many investors track the M2-to-Bitcoin ratio to understand Bitcoin’s relative scarcity against global liquidity:

• M2 Supply: Represents cash, checking deposits, and easily convertible near-money — a core measure of global money supply.

• Bitcoin’s Cap: Unlike fiat currencies, Bitcoin’s total supply is capped at 21 million coins, with the last Bitcoin expected to be mined around 2140.

• Implication: Rising M2 + fixed Bitcoin = each Bitcoin theoretically absorbs more global liquidity over time.

As Cathie Wood, CEO of ARK Invest, has often stated, Bitcoin could act as a hedge against monetary debasement when central banks expand liquidity (source).

💡 What Could This Mean for Investors?

Here are three takeaways for Bitcoin investors and analysts:
✅ Potential Store of Value: A higher M2 ratio supports the thesis that Bitcoin’s scarcity could protect wealth long-term.
✅ Macro Hedge: Some view Bitcoin as an alternative to gold when fiat supply expands aggressively.
✅ Caution Required: Volatility remains — investors should balance enthusiasm with prudent risk management.

For related trends, see [Link to related internal page].

❓ FAQs

Q1: Who is ARK Invest?
ARK Invest is a global investment firm founded by Cathie Wood, known for its focus on disruptive innovation and in-depth research reports.

Q2: What is the M2 money supply?
M2 includes physical cash, checking accounts, and easily liquid assets — it’s a standard measure of how much money circulates in an economy.

Q3: How does Bitcoin’s supply limit work?
Bitcoin’s supply is hard-coded to a maximum of 21 million coins. New coins are released through mining rewards, which halve approximately every four years.

Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.