- Bitcoin's New Records and Volatility
- Analysts' Views on Inflation Impact
- Comparison with Previous Cycles
Bitcoin has shown significant volatility this year, achieving new records and then suddenly dropping. Analysts warn about the impact of inflation on its real value.
Bitcoin's New Records and Volatility
This year, the leading cryptocurrency Bitcoin (BTC) broke early records, soaring to $73,500 in March ahead of the halving. After reaching a new all-time high (ATH), Bitcoin's price dropped below $50,000 during a sharp correction in August. In September, BTC's value largely fluctuated between $57,000 and $60,000, not falling below $60,000 after the FED's interest rate cut.
Analysts' Views on Inflation Impact
Analyst Luke Broyles made an interesting prediction regarding Bitcoin's price in an X post. He noted that once inflation is taken into account, the new ATH around $100,000 may not be as impressive as it seems. Comparing the current situation with the $69,000 level in 2021 and the inflation data at that time, Broyles stated that the adjusted-for-inflation ATH of 2021 equates to $83,000.
Comparison with Previous Cycles
According to the analyst, even if Bitcoin reaches $100,000 by 2025, its inflation over the next 6-18 months due to monetary expansion might nullify the real value of this amount. He concluded that a nominal $100,000 BTC price in 2025 barely matches $69,000 in 2021.
As Bitcoin gears up for another potential surge, analysts remind us to consider inflation's impact on its real value. Keeping an eye on economic conditions will help better understand the current and future worth of this cryptocurrency.
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