Bitcoin Isn't Currently An Inflation Hedge Says Chainalysis

Blockchain analytics firm Chainalysis hasn’t found a “statistically significant correlation” between Bitcoin BTC/USD and inflation in the U.S.

What Happened: Kim Grauer, head of research at Chainalysis, told Cointelegraph the firm has not found data to support the thesis that Bitcoin is a hedge against inflation.

“Right now, we can't show a statistically significant correlation between inflation in the U.S. and Bitcoin prices, but we know anecdotally that many people invest in Bitcoin as a hedge against inflation,” said Grauer.

Many crypto market proponents have argued Bitcoin provides the ideal protection against fiat currency debasement — some even suggesting the leading crypto asset displaces gold in this role.

The main idea behind the argument is that Bitcoin has a programmed maximum supply capped at 21 million coins, making it a provable scarce digital asset.

In fact, a survey from Mizuho Securities earlier this year found as much as $40 billion worth of stimulus checks may have been invested in Bitcoin and stocks.

Still, even amid concerns of excessive money printing leading to rising inflation, the data doesn’t appear to show any significant evidence Bitcoin is actually being used as an inflation hedge just yet.

BTC Price Action: Bitcoin was trading at a price of $43,088, up 0.17% as of Tuesday morning.

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