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, 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.
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.
Thus, the record ratio between the global M2 money supply and Bitcoin supply may indicate a growing relative value of Bitcoin as an asset. Given the forthcoming changes in monetary policy and issuance, interest in Bitcoin may only increase.
