📅 October 26 | New York, United States
For years, Bitcoin was presented as “digital gold,” the ultimate hedge against inflation. But a new analysis from NYDIG, one of the most influential institutional firms in the ecosystem, has just changed the narrative: Bitcoin's price is not driven by inflation, but by global liquidity. The study states that BTC now acts as a real-time barometer of global financial conditions, reacting directly to capital flows and monetary policies rather than consumer prices.
📖 NYDIG's report challenges one of the most widespread narratives in the crypto market: that of Bitcoin as an “inflation hedge”.
According to data analyzed between 2017 and 2025, BTC's performance is much more correlated with the expansion or contraction of global liquidity, including variables such as central bank balance sheets, real interest rates, and dollar credit flows.
"Bitcoin responds more to how much money is circulating in the system than to how much prices rise. In other words, it doesn't protect against the cost of living, but rather against financial hardening," said Greg Cipolaro, head of research at NYDIG.
The report also notes that Bitcoin's major rallies—in 2020, 2023, and mid-2025—coincided with moments of monetary easing or expansions in the global liquidity base, driven by the Fed, the ECB, and the Bank of Japan. Conversely, during periods of tightening—such as the "mini-tightening" of 2022 or early 2024—the price of BTC tended to fall, even amid historically high inflation.
Cipolaro adds that this reading redefines Bitcoin's role within a portfolio: not as a defensive asset against inflation, but as a leading indicator of global financial risk appetite.
In other words, BTC rises when central banks turn on the tap and falls when they turn it off. NYDIG also highlights that this dynamic makes Bitcoin a useful tool for measuring the "temperature" of the financial system, especially in a context where central banks have begun to reverse restrictive policies following signs of an economic slowdown.
In this sense, the report concludes that if the easing trend continues in 2026, the Bitcoin price could benefit from a sustained rebound, regardless of inflation rates.
Topic Opinion:
It's no longer about protecting yourself from more expensive bread or a weaker dollar, but rather about reading how institutional money moves in real time. Bitcoin today reflects the health—or stress—of the global financial system. When there is liquidity, the market breathes and BTC flourishes. When it dries up, even "digital gold" feels the impact.
This view doesn't weaken Bitcoin: it elevates it. It makes it the most transparent barometer of the modern financial world, an asset that measures collective confidence with mathematical precision.
💬 Do you think Bitcoin is still the “digital gold” for times of uncertainty?
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