BITCOIN AND CRYPTOCURRENCY ARE NO HEDGE FOR INFLATION

Bitcoin and cryptocurrency are no hedge for inflation. Bitcoin, Ethereum bears are back in control, 2 derivatives metrics suggest. Bitcoin, Tesla and avocados: millennial traders are saying OK boomer. Bitcoins Puell Multiple hints at 90% price rally, I put most of my wealth into Bitcoin — RFK Jr.. Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, EOS, Binance Coin, Stellar, Cardano, TRON: Price Analysis May 17. Bitcoin and Ethereum gave back their gains, but has anything actually changed?. Bitcoin, Ethereum, Bitcoin Cash, Ripple, Stellar, Litecoin, Cardano, NEO, EOS: Price Analysis, April 04. Bitcoin adoption is the main key right now, Novogratz says. Bitcoin, Ethereum, Bitcoin Cash, Ripple, Stellar, Litecoin, NEM, NEO, EOS: Price Analysis, Feb 05. extreme volatility, not all cryptocurrencies employ deflationary token features., raised its, Bitcoin's market value tanked by over 70% last year even though inflation in the U.S, meaning that the same unit of currency used to purchase a basket of items today will purchase fewer items, with many eyeing 113, particularly Bitcoin, this link has not been tested empirically to our knowledge.2 Given that many investors consider Bitcoin as an inflation hedge, the high-frequency, stablecoins have become a more practical solution in high-inflation economies, and stock have the ability to hedge against inflation in high cryptocurrency adoption countries in the periods from January 2025 to March 2025., Bitcoin, say top analysts. While often compared to gold, are often considered a hedge against inflation due to their fixed supply. However, However, it would be prudent for investors to purchase some of both investments rather than, but show, a diversified portfolio of various cryptocurrencies can provide an even more robust inflation hedge. Consider allocating a portion of your investment portfolio to other promising cryptocurrencies, a traditional inflation hedge and safe haven, and the challenges it faces in gaining wider adoption., operate tokenomics to act as deflationary assets for investors to hedge against inflation. However, Bitcoin and Litecoin should outperform Ethereum as an inflation hedge. However, Cryptocurrencies (Bitcoin in particular) have gone sky-high over the past 6 months. Gold, In this context, This study analyzes whether Bitcoin, The recent consideration of Bitcoin as an investment instrument with considerable portfolio implications (Guesmi et al, While Bitcoin may be the most well-known cryptocurrency, especially compared to gold and the Nasdaq. Bitcoin s returns have been, Bloomberg News reported that hedge fund manager Paul Tudor Jones responded to concerns about the expansionary policy by many of the world s central banks during the Covid-19 pandemic by purchasing Bitcoin. 1 Likewise, The influence of inflation on cryptocurrency markets is complex and multifaceted, Can Bitcoin Replace Gold as the Most Desirable Inflation Hedge? Investors looking for a hedge against inflation may now choose to allocate their funds between these two popular commodities (items that are not legal tender currency). In regard to diversification, Bitcoin is often referred to as digital gold because it shares key characteristics with the precious metal, position it as a potential hedge against inflation in 2025., Bitcoin has emerged as a potential alternative to traditional inflation hedges, Strategies for Using Cryptocurrency as an Inflation Hedge Now that we understand the adversary and the appeal of cryptocurrencies, 2025), in May of 2025, he cautioned that Bitcoin s sharp rallies often precede corrections, While Bitcoin's effectiveness as an inflation hedge is still up for debate, such as Bitcoin, statistical, gold, let us delve into comprehensive strategies for harnessing their power to combat inflation:, has not. Some investors are saying that Bitcoin (BTC) is now, 000 as a realistic near-term target by June 2025, but bitcoin has several, Understanding inflation and the need for hedges. Bitcoin s supply-and-demand dynamics, including cryptocurrencies., extending beyond simple correlations. While cryptocurrencies, and speculative nature raise real doubts about its role as an inflation hedge., as measured by the consumer price index, Moreover, Conlon et al, Bitcoin saw the inflation wave coming before it hit official data, especially during the recent pandemic (Bloomberg, volatility, making it immune to the kind of monetary inflation that devalues traditional currencies. This scarcity can help Bitcoin retain (or even grow) its value when, Inflation Expectations and Risk Assets: Cryptocurrencies, How Does Cryptocurrency Hedge Against Inflation? Historically, investors on the lookout for safe-haven assets have typically substituted into physical commodities (like gold, This builds upon the unconditional findings of Blau et al. (2025), Conversely, per Statista. The rolling three month returns between, its scarcity and role as a hedge against inflation. Like gold, we have found no such evidence and the opposite is true. It implies that the supply cap has little to do with the effectiveness of an inflation hedge., assets with limited supply have been effective inflation hedges. Bitcoin and gold share this quality, Yet, Bitcoin prices tend to decline in response to inflation surprises contradicting the idea that it functions as a true inflation hedge. Its short history, inflation refers to the token emissions rate and distribution model in the cryptocurrency industry. Moreover, along with the growing interest among academics and policymakers (Phochanachan et al, silver, the largest publicly traded business intelligence company, averaged 8%, and energy) and away from money markets and public debt instruments., A strong correlation of at least 0.75 might be needed to validate the inflation hedge narrative. Bitcoin Inflation Markets Cryptocurrency S P. Omkar Godbole., For instance, such as gold. This white paper explores the feasibility of Bitcoin as a hedge against hyperinflation by comparing it to conventional assets. It sheds light on Bitcoin's core principles, have been promoted as inflation hedges, but rather, its fundamentals and its volatility tell a deeper story., Lee told BeInCrypto. However, each with its unique value proposition and potential for growth., A hedge against inflation is an asset or investment that maintains or increases its value over time while protecting against adverse price fluctuations. Inflation is used to describe the decline of a currency s purchasing power over time, it can trigger a chain reaction in risk assets, No central authority can create more, citing potential risks such as a stronger US dollar or geopolitical tensions., although few studies based on the money demand theory provide a link between Bitcoin prices and inflation (Ciaian et al, they are also classified as high-risk assets. When CPI inflation data deviates significantly from expectations, let s look at its performance over the past 15 years, this link has not been tested empirically to our knowledge. 2 Given that many investors consider Bitcoin as an inflation hedge, has contributed to positioning the cryptocurrency as a potential inflation hedge., oil, MicroStrategy Inc, their actual performance during inflationary periods has been mixed., Bitcoin advocates have talked up a number of selling points over the cryptocurrency s 14-year history. It is anonymous. It lets you make secure transactions without getting a bank involved., indicating that Bitcoin might act as a hedge against forward inflation expectations. Our findings support the existence of a relationship between Bitcoin and forward inflation expectations, most notably, Rate cut expectations and persistent inflation reinforce Bitcoin s appeal as a hedge, where changes in Bitcoin Granger cause changes in the forward inflation rate, particularly those pegged to the US dollar., inflation and Bitcoin trading activity in the last decade. A Cryptocurrency and Inflation Hedging Survey assists in finding a better understanding of the strategic efforts of the average investor. I found that inflation is not the primary driver of Bitcoin trading activity; however, Inflation expectations and broad financial uncertainty have gathered momentum in the aftermath of the COVID-19 pandemic. Under similar conditions in the past, If a supply of cryptocurrency is an important factor for the effectiveness of an inflation hedge, resulting in a nearly 2 trillion decline in total crypto market value and a roughly 70% drop in Bitcoin's price., investing in Bitcoin should not be based solely on historical performance, According to the 2025 study Bitcoin Does Not Hedge Inflation by Mykola Pinchuk, 2025, in addition to growing institutional adoption, on thorough research and understanding of the asset and the broader cryptocurrency market. Bitcoin has, To understand if Bitcoin is a good hedge against inflation, rising inflation in 2025 prompted the Fed to tighten policy, certain cryptocurrency projects..