According to Coindesk, NYDIG's Global Head of Research Greg Cipolaro found that Bitcoin's price is not reliably driven by inflation, challenging its narrative as a digital gold and inflation hedge. Instead, Bitcoin behaves more like a liquidity barometer, responding to real interest rates and money supply. Gold, traditionally seen as an inflation hedge, also shows inconsistent and often negative correlations with inflation. Cipolaro noted that both assets are more closely tied to real interest rates, with Bitcoin's inverse relationship to real rates strengthening as it integrates into the financial system.
NYDIG: Bitcoin Functions as Liquidity Barometer, Not Inflation Hedge
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