The Bitcoin all-time high in an inflation-adjusted world is $77,000 Quick Take
The inflationary scenario the economy has been grappling with since 2021 has prompted a fresh look at Bitcoin’s performance.
Central banks have leveraged the Consumer Price Index (CPI) methodology to target their 2% inflation mandate, a model that has its critics due to the representation of the ‘basket’ of goods, given that different individuals have varying daily consumption patterns.
The true gravity of inflation’s impact on the digital asset market can be seen when adjusting Bitcoin’s all-time high of approximately $69,420 in November 2021 to a CPI inflation-adjusted figure. The calculation, based on CPI metrics, reveals a striking reality: for Bitcoin to truly reclaim its zenith, it would need to reach closer to a value of $77,000, according to data provided by the US Bureau of Labour Statistics.
Whether Bitcoin serves as a hedge against inflation or a tool for currency debasement remains a contentious topic. However, its long-term returns continue to fuel these discussions, emphasizing its potential role in either an inflationary or stagflationary environment.
Analyst 
James Van Straten
James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.
Latest Insights
In this insight
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.