Bitcoin’s Inflation Link Is Weak: New Research Suggests Liquidity Drives Price Movements

A recent report by NYDIG, a leading digital asset management firm, challenges the traditional notion of Bitcoin as an inflation hedge. The analysis reveals a weak correlation between Bitcoin and actual inflation, with price movements seemingly driven more by broader macroeconomic factors like liquidity and interest rates. 📚 This research highlights Bitcoin’s evolving role in financial markets, suggesting it might serve as a gauge for global liquidity rather than a fixed hedge against inflation.