Bitcoin's performance in a global inflation environment has been mixed. While its fixed supply suggests it could hedge inflation, historical data shows it doesn't always succeed. In 2022, Bitcoin fell 65% amid high inflation, unlike gold, which held steady. However, over longer periods, like 2020-2025, its 1,082% ROI far outpaced 26% cumulative inflation, hinting at potential as a store of value. Its correlation with the stock market, particularly the S&P 500, has grown stronger, often moving in tandem due to shared investor sentiment and risk appetite. From a pre-2020 low correlation (~0.2), it rose to ~0.6 in 2021-2022, though it may be decoupling again in 2024. This suggests Bitcoin behaves more like a risk asset than a safe haven, amplifying stock market trends with higher volatility. 0 reply
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