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ARK Invest: Global M2 to Bitcoin Supply Ratio Reaches 12-Year High
Table of Contents
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What Did ARK Invest Reveal?
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Why Does the M2 to Bitcoin Ratio Matter?
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What Could This Mean for Investors?
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FAQs
Introduction
In its June 2025 Bitcoin Monthly Report, global asset manager ARK Invest has revealed a striking milestone for Bitcoinâs scarcity narrative. The ratio of global M2 money supply to Bitcoin supply has reached its highest point in 12 years â highlighting how Bitcoinâs fixed supply continues to contrast with expanding global liquidity.
What Did ARK Invest Reveal?
According to ARK Investâs official report (source), each Bitcoin now represents about $5.7 million of global M2 money supply. This is the highest ratio seen since Bitcoinâs early years.
Key details from the report:
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Record Ratio: The global M2 supply is growing, while Bitcoinâs issuance rate keeps dropping due to its halving cycle.
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Future Outlook: ARK expects this ratio to keep climbing as Bitcoinâs supply growth shrinks further.
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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 Bitcoinâs relative scarcity against global liquidity:
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M2 Supply: Represents cash, checking deposits, and easily convertible near-money â a core measure of global money supply.
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Bitcoinâs Cap: Unlike fiat currencies, Bitcoinâs total supply is capped at 21 million coins, with the last Bitcoin expected to be mined around 2140.
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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 Bitcoinâs 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 â 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 â itâs a standard measure of how much money circulates in an economy.
Q3: How does Bitcoinâs supply limit work?
Bitcoinâs supply is hard-coded to a maximum of 21 million coins. New coins are released through mining rewards, which halve approximately every four years.
This post ARK Invest: Global M2 to Bitcoin Supply Ratio Reaches 12-Year High first appeared on BitcoinWorld and is written by Keshav Aggarwal
