Some cryptocurrencies are designed either to resist inflation or have low predictable inflation rates. Additionally, although they are often praised as a hedge against inflation, Bitcoin's effectiveness as a pure hedge has recently declined due to changes in the economy.

What is the price increase attributed to Bitcoin?

The site added that due to a significant portion of institutional investors, the cryptocurrency has started to increasingly follow market movements, suggesting that when the market declines, Bitcoin is likely to follow suit. Therefore, when there is news related to inflation, it is expected that the Federal Reserve will tighten the financial system and raise interest rate policies, and thus the value of all assets, including virtual currencies like Bitcoin, will decrease.

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