ARK Invest: Global M2 to Bitcoin Supply Ratio Reaches 12-Year High

Key Points

1. The ratio of global M2 money supply to Bitcoin supply is at its highest in 12 years, with each Bitcoin representing about $5.7 million of global M2 money supply.

2. Bitcoin's fixed supply contrasts with expanding global liquidity, reinforcing its scarcity narrative.

3. Cathie Wood, CEO of ARK Invest, suggests Bitcoin could act as a hedge against monetary debasement during periods of central bank liquidity expansion.

4. The report suggests Bitcoin's scarcity could make it a potential long-term store of value and a macro hedge against fiat currency risks.

5. Investors are advised to balance enthusiasm with prudent risk management due to Bitcoin's inherent volatility.