Bitcoin is no inflation hedge but thrives when the dollar wobbles: NYDIG
NYDIG research suggests Bitcoin acts more as a liquidity barometer, benefiting from a weakening dollar rather than hedging against inflation.Summary
According to Greg Cipolaro, NYDIG's global head of research, data does not strongly support the argument that Bitcoin consistently acts as an inflation hedge, noting that correlations with inflationary measures are neither consistent nor extremely high. Instead, Bitcoin has evolved into a "liquidity barometer." Cipolaro highlighted that a weakening US dollar, measured by the US Dollar Index, helps push up Bitcoin's price alongside gold, as both assets exhibit an inverse correlation with the dollar. Furthermore, the primary macroeconomic factors impacting Bitcoin and gold movements are interest rates and money supply; falling interest rates and looser monetary policies typically benefit Bitcoin. This alignment in price movements relative to macro conditions indicates Bitcoin's growing integration into the global financial landscape, similar to gold which serves as a real-rate hedge.
(Source：Cointelegraph)