Bitcoin's performance in a global inflationary environment has been notable. As fiat currencies lose value due to rising inflation, Bitcoin often emerges as a hedge, given its fixed supply of 21 million coins. Historical data shows mixed results: during inflationary spikes (e.g., 2021-2022), Bitcoin initially surged, peaking at $69,000, but later faced volatility, dropping below $20,000 as risk-off sentiment grew. Its correlation with the stock market, particularly the S&P 500, has increased over time, averaging around 0.6 in 2022, per Bloomberg data. This suggests Bitcoin behaves more like a tech stock than a pure inflation shield during uncertainty. However, in prolonged inflation (e.g., post-2023), its decentralized nature and scarcity could decouple it from equities, reinforcing its "digital gold" narrative as central banks struggle with currency debasement.