Bitcoin ‘never Crossed’ $100k If Adjusted For Inflation, Says Alex...

Galaxy’s Alex Thorn says Bitcoin's $126,000 peak translates to $99,848 after being adjusted for inflation, falling short of its milestone six-figure mark.

Bitcoin came just shy of hitting a milestone six figures when inflation is factored in, despite the cryptocurrency hitting an all-time peak of above $126,000 in October, says Galaxy head of research Alex Thorn.

“If you adjust the price of Bitcoin for inflation using 2020 dollars, BTC never crossed $100,000,” Thorn said on Tuesday.

Thorn said his adjusted price high for Bitcoin (BTC) accounted for the Consumer Price Index (CPI) decline in purchasing power incrementally across every inflation print from 2020 to today.

CPI measures inflation via the prices of a basket of goods and services and is calculated by the US Bureau of Labor Statistics to track changes in spending habits.

The agency reported in November that the CPI rose 2.7% over the last 12 months, not seasonally adjusted, decreasing the purchasing power of the dollar, which has lost around 20% of its value since 2020.

Today, the price of goods is 1.25 times higher than in 2020, according to the CPI, and a dollar today only buys around 80% of what it could buy back then.

Related: Bitcoin hunts liquidity as US CPI inflation drops to lowest since 2021

Inflation in the US skyrocketed above 9% in mid-2022 during the COVID-19 pandemic and remains above the Federal Reserve’s 2% target.

US dollar declines have accelerated this year as measured by the Dollar Currency Index (DXY), which compares the US dollar to a basket of global currencies.

Source: CoinTelegraph