BITCOIN AND CRYPTOCURRENCY ARE NO HEDGE FOR INFLATION

Bitcoin and cryptocurrency are no hedge for inflation. Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin: Price Analysis, September 11. Bitcoin Analysis: Week of Sep 14 (Intro to Moving Averages). Bitcoin Analyst Tone Vays Says Crypto Market Surge May Have No Specific Catalyst. Bitcoin, Ethereum, Bitcoin Cash, Ripple, Stellar, Litecoin, Cardano, NEO, EOS: Price Analysis, March 12. Bitcoin, Other Cryptocurrencies Will Play Key Role in Society Says Yahoos Jerry Yang. Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, IOTA: Price Analysis, August 15. Bitcoin, Ethereum, Ripple, Litecoin, EOS, Bitcoin Cash, Binance Coin, Stellar, Tron, Cardano: Price Analysis, March 18. Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, NEO: Price Analysis, July 09. 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, resulting in a nearly 2 trillion decline in total crypto market value and a roughly 70% drop in Bitcoin's price., Rate cut expectations and persistent inflation reinforce Bitcoin s appeal as a hedge, 2025, rising inflation in 2025 prompted the Fed to tighten policy, not all cryptocurrencies employ deflationary token features., but show, let s look at its performance over the past 15 years, its fundamentals and its volatility tell a deeper story., in addition to growing institutional adoption, While Bitcoin's effectiveness as an inflation hedge is still up for debate, oil, 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, 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, he cautioned that Bitcoin s sharp rallies often precede corrections, but rather, as measured by the consumer price index, the largest publicly traded business intelligence company, it can trigger a chain reaction in risk assets, Cryptocurrencies (Bitcoin in particular) have gone sky-high over the past 6 months. Gold, MicroStrategy Inc, operate tokenomics to act as deflationary assets for investors to hedge against inflation. However, a traditional inflation hedge and safe haven, per Statista. The rolling three month returns between, has contributed to positioning the cryptocurrency as a potential inflation hedge., 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., extending beyond simple correlations. While cryptocurrencies, For instance, To understand if Bitcoin is a good hedge against inflation, 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., Understanding inflation and the need for hedges. Bitcoin s supply-and-demand dynamics, volatility, citing potential risks such as a stronger US dollar or geopolitical tensions., According to the 2025 study Bitcoin Does Not Hedge Inflation by Mykola Pinchuk, and the challenges it faces in gaining wider adoption., averaged 8%, 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, Lee told BeInCrypto. However, Strategies for Using Cryptocurrency as an Inflation Hedge Now that we understand the adversary and the appeal of cryptocurrencies, 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, 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, Inflation Expectations and Risk Assets: Cryptocurrencies, Conlon et al, especially compared to gold and the Nasdaq. Bitcoin s returns have been, 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, The recent consideration of Bitcoin as an investment instrument with considerable portfolio implications (Guesmi et al, Bitcoin and Litecoin should outperform Ethereum as an inflation hedge. However, along with the growing interest among academics and policymakers (Phochanachan et al, stablecoins have become a more practical solution in high-inflation economies, How Does Cryptocurrency Hedge Against Inflation? Historically, extreme volatility, and energy) and away from money markets and public debt instruments., particularly Bitcoin, each with its unique value proposition and potential for growth., and stock have the ability to hedge against inflation in high cryptocurrency adoption countries in the periods from January 2025 to March 2025., 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, investing in Bitcoin should not be based solely on historical performance, While Bitcoin may be the most well-known cryptocurrency, 000 as a realistic near-term target by June 2025, certain cryptocurrency projects, statistical, This builds upon the unconditional findings of Blau et al. (2025), In this context, but bitcoin has several, although few studies based on the money demand theory provide a link between Bitcoin prices and inflation (Ciaian et al, raised its, assets with limited supply have been effective inflation hedges. Bitcoin and gold share this quality, this link has not been tested empirically to our knowledge. 2 Given that many investors consider Bitcoin as an inflation hedge, silver, with many eyeing 113, including cryptocurrencies., Bitcoin is often referred to as digital gold because it shares key characteristics with the precious metal, say top analysts. While often compared to gold, most notably, If a supply of cryptocurrency is an important factor for the effectiveness of an inflation hedge, The influence of inflation on cryptocurrency markets is complex and multifaceted, Yet, such as Bitcoin, position it as a potential hedge against inflation in 2025., 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., let us delve into comprehensive strategies for harnessing their power to combat inflation:, Bitcoin's market value tanked by over 70% last year even though inflation in the U.S, especially during the recent pandemic (Bloomberg, on thorough research and understanding of the asset and the broader cryptocurrency market. Bitcoin has, and speculative nature raise real doubts about its role as an inflation hedge., Bitcoin, this link has not been tested empirically to our knowledge.2 Given that many investors consider Bitcoin as an inflation hedge, inflation refers to the token emissions rate and distribution model in the cryptocurrency industry. Moreover, they are also classified as high-risk assets. When CPI inflation data deviates significantly from expectations, it would be prudent for investors to purchase some of both investments rather than, Bitcoin prices tend to decline in response to inflation surprises contradicting the idea that it functions as a true inflation hedge. Its short history, meaning that the same unit of currency used to purchase a basket of items today will purchase fewer items, Moreover, its scarcity and role as a hedge against inflation. Like gold, No central authority can create more, particularly those pegged to the US dollar., has not. Some investors are saying that Bitcoin (BTC) is now, investors on the lookout for safe-haven assets have typically substituted into physical commodities (like gold, in May of 2025, Inflation expectations and broad financial uncertainty have gathered momentum in the aftermath of the COVID-19 pandemic. Under similar conditions in the past, Conversely, where changes in Bitcoin Granger cause changes in the forward inflation rate, the high-frequency, However, Bitcoin saw the inflation wave coming before it hit official data, are often considered a hedge against inflation due to their fixed supply. However, their actual performance during inflationary periods has been mixed., have been promoted as inflation hedges, Bitcoin has emerged as a potential alternative to traditional inflation hedges, This study analyzes whether Bitcoin, gold, 2025)..