Alex Thorn, Galaxy’s head of research, said that Bitcoin was just short of reaching a six-figure milestone when you factor in inflation. This is despite its all-time high of over $126,000 reached in October.
“If you adjust the price of Bitcoin for inflation using 2020 dollars, BTC never crossed $100,000,” Thorn said Tuesday is the day.
“It actually topped at $99,848 in 2020 dollar terms, if you can believe it.”
Thorn’s adjusted Bitcoin price is high (BTCThe Consumer Price Index’s (CPI) incremental decline in purchasing ability was accounted for by.
CPI US Bureau of Labor Statistics uses the basket of prices to measure inflation and track spending patterns.
This agency is a good example. reported In November, the CPI increased 2.7% in the past 12 months without seasonally adjusting, reducing the buying power of the US dollar. It has fallen around 20% since 2020.
US inflation is high
According to CPI data, today’s prices are 1.25 times more expensive than they were in 2020. A dollar bought back then only equated to 80%.
Related: Bitcoin hunts liquidity as US CPI inflation drops to lowest since 2021
The US inflation rate soared to over 9% by mid-2022, during the COVID-19 Pandemic. It remains well above the Federal Reserve target of 2%.
Dollar Index plunges in 2025
Dollar Currency Index DXY, which measures the US dollar against a basket global currencies, has shown a rapid decline in the US dollar this year.
DXY is a DXY. fallen The number of 97.8 has risen by 11.1% from the start the year. according TradingView. In September, it hit its lowest level in three years at 96.3. It has also been on a downward trend since October 20,22. This is because the dollar continues to lose ground against other currencies.
The “debasement trade“An investment approach whereby traders invest in assets which they expect to hold value or even increase as fiat money loses its purchasing power.
Magazine: Bitcoin may dip to $65K in 2026, Clarity Act speculation grows: Hodler’s Digest
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Source: cointelegraph.com
