The Effectiveness of Bitcoin as an Inflation Hedge
In theory, Bitcoin is regarded as "digital gold," but its actual performance:
When the U.S. CPI reached 7% in 2021, Bitcoin fell by 20%;
During the phase of declining inflation in 2023, Bitcoin instead rose by 160%.
Data shows that its price is more driven by liquidity (the correlation coefficient of year-on-year changes in USD M2 is 0.7), rather than solely by inflation indicators. Holders need to adjust their inflation hedging expectations and pay attention to changes in macro monetary policy.