Bitcoin and S&P 500 Valuations Mask a Hidden Risk: The Money Supply Effect

New York, Wednesday, 17 June 2026.
A groundbreaking analysis reveals that when adjusted for M2 money supply growth, the S&P 500 is only now matching its 2000 peak—despite nominal records. Bitcoin, the most liquidity-sensitive asset, shows even sharper divergence, signaling potential overvaluation in risk markets. With margin debt hitting a record $1.42 trillion, the data suggests investor leverage is outpacing real economic gains, raising red flags for sustainability.