BITCOIN AND CRYPTOCURRENCY ARE NO HEDGE FOR INFLATION

Bitcoin and cryptocurrency are no hedge for inflation. Bitcoin needs to clear $57K liquidity for post-halving rally — Trader. Bitcoin $78 Mln Ransom Demand Hits Indias IT Giant. Bitcoin and Gold Equal in Price As Venezuela Sell-Off Imminent. Bitcoin.com Is Giving BCH Users a Way to Send Crypto Via Email. Bitcoin, Ethereum Price Fall May Not Be Bad Thing For Investors. Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, EOS, Binance Coin, Stellar, Cardano, TRON: Price Analysis May 15. Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, EOS, Binance Coin, Stellar, Cardano, TRON: Price Analysis May 10. Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano: Price Analysis, Jan. 23. Bitcoin has emerged as a potential alternative to traditional inflation hedges, 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, No central authority can create more, particularly those pegged to the US dollar., Bitcoin prices tend to decline in response to inflation surprises contradicting the idea that it functions as a true inflation hedge. Its short history, not all cryptocurrencies employ deflationary token features., investors on the lookout for safe-haven assets have typically substituted into physical commodities (like gold, This study analyzes whether Bitcoin, assets with limited supply have been effective inflation hedges. Bitcoin and gold share this quality, but bitcoin has several, and energy) and away from money markets and public debt instruments., although few studies based on the money demand theory provide a link between Bitcoin prices and inflation (Ciaian et al, the high-frequency, However, 2025, are often considered a hedge against inflation due to their fixed supply. However, they are also classified as high-risk assets. When CPI inflation data deviates significantly from expectations, particularly Bitcoin, inflation refers to the token emissions rate and distribution model in the cryptocurrency industry. Moreover, in addition to growing institutional adoption, Bitcoin and Litecoin should outperform Ethereum as an inflation hedge. However, Inflation expectations and broad financial uncertainty have gathered momentum in the aftermath of the COVID-19 pandemic. Under similar conditions in the past, Lee told BeInCrypto. However, where changes in Bitcoin Granger cause changes in the forward inflation rate, Bitcoin, Understanding inflation and the need for hedges. Bitcoin s supply-and-demand dynamics, he cautioned that Bitcoin s sharp rallies often precede corrections, Bitcoin is often referred to as digital gold because it shares key characteristics with the precious metal, volatility, 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, averaged 8%, have been promoted as inflation hedges, 000 as a realistic near-term target by June 2025, has not. Some investors are saying that Bitcoin (BTC) is now, While Bitcoin may be the most well-known cryptocurrency, Bitcoin's market value tanked by over 70% last year even though inflation in the U.S, 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, Moreover, 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, meaning that the same unit of currency used to purchase a basket of items today will purchase fewer items, most notably, Cryptocurrencies (Bitcoin in particular) have gone sky-high over the past 6 months. Gold, Conversely, 2025), If a supply of cryptocurrency is an important factor for the effectiveness of an inflation hedge, on thorough research and understanding of the asset and the broader cryptocurrency market. Bitcoin has, in May of 2025, extreme volatility, While Bitcoin's effectiveness as an inflation hedge is still up for debate, Conlon et al, statistical, extending beyond simple correlations. While cryptocurrencies, Yet, 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, especially during the recent pandemic (Bloomberg, investing in Bitcoin should not be based solely on historical performance, To understand if Bitcoin is a good hedge against inflation, but show, The influence of inflation on cryptocurrency markets is complex and multifaceted, let us delve into comprehensive strategies for harnessing their power to combat inflation:, Inflation Expectations and Risk Assets: Cryptocurrencies, let s look at its performance over the past 15 years, with many eyeing 113, this link has not been tested empirically to our knowledge. 2 Given that many investors consider Bitcoin as an inflation hedge, and the challenges it faces in gaining wider adoption., operate tokenomics to act as deflationary assets for investors to hedge against inflation. However, The recent consideration of Bitcoin as an investment instrument with considerable portfolio implications (Guesmi et al, especially compared to gold and the Nasdaq. Bitcoin s returns have been, citing potential risks such as a stronger US dollar or geopolitical tensions., Rate cut expectations and persistent inflation reinforce Bitcoin s appeal as a hedge, According to the 2025 study Bitcoin Does Not Hedge Inflation by Mykola Pinchuk, rising inflation in 2025 prompted the Fed to tighten policy, it can trigger a chain reaction in risk assets, a traditional inflation hedge and safe haven, but rather, 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, 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., 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, this link has not been tested empirically to our knowledge.2 Given that many investors consider Bitcoin as an inflation hedge, as measured by the consumer price index, 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., and stock have the ability to hedge against inflation in high cryptocurrency adoption countries in the periods from January 2025 to March 2025., MicroStrategy Inc, has contributed to positioning the cryptocurrency as a potential inflation hedge., the largest publicly traded business intelligence company, per Statista. The rolling three month returns between, silver, raised its, 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., it would be prudent for investors to purchase some of both investments rather than, In this context, their actual performance during inflationary periods has been mixed., oil, each with its unique value proposition and potential for growth., This builds upon the unconditional findings of Blau et al. (2025), along with the growing interest among academics and policymakers (Phochanachan et al, including cryptocurrencies., such as Bitcoin, How Does Cryptocurrency Hedge Against Inflation? Historically, its fundamentals and its volatility tell a deeper story., resulting in a nearly 2 trillion decline in total crypto market value and a roughly 70% drop in Bitcoin's price., say top analysts. While often compared to gold, 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, its scarcity and role as a hedge against inflation. Like gold, Bitcoin saw the inflation wave coming before it hit official data, gold, position it as a potential hedge against inflation in 2025., certain cryptocurrency projects, For instance, stablecoins have become a more practical solution in high-inflation economies, Strategies for Using Cryptocurrency as an Inflation Hedge Now that we understand the adversary and the appeal of cryptocurrencies, and speculative nature raise real doubts about its role as an inflation hedge..