One of the main reasons people buy Bitcoin is that it is an asset class which will grow your money. Yes, it does have a close relation with inflation that helps it to grow its value which helps it to hedge against the inflation to protect. And this is the main pitch for Bitcoin since it has a cap of 21 million, the demand will increase when the supply reduces and thus the price value will increase.
But the problem is that with the recent inflation data coming out from the US which says that the inflation hits the 40 years high and thus all the stock markets have plumbed along with the Crypto. So it seems like the price movement of Bitcoin is still get affected by the inflation data and thus we can say that it is not a hedge against inflation. If we take both the stock market and crypto, both data show that they are moving ups and downs together.
PC: Glassnode, Bloomberg
So it is becoming clear that there is some relationship between Bitcoin and the stock market and thus they remain in sync. So whenever there is an increase in interest rate by the US or there is this inflation data, both the Stock Market as well as the Crypto plummets, but yeah we can say that if the Bull starts in Bitcoin the value it generates is much more than the Stock Market.
Also, Bitcoin is supposed to be a digital gold which means it is as effective as gold to store its value but it is not a reality, to be honest. Gold being a commodity is a hedge against inflation but that is not true for Bitcoin.
So, what are your thoughts on this?