A blockchain researcher believes BTC is a solid hedge against inflation. Bitcoin (BTC) warned its investors.
Lucas Outumuro, head of research at blockchain intelligence firm IntoTheBlock, said: BTCHe questions the thesis that the coin is a hedge against inflation due to its limited supply of 21 million BTC.
The analyst pointed out in a recent news release that the recent price drops in Bitcoin coincided with rapidly rising inflation figures.
“As signs of increasing inflation emerged, many well-known investors such as Paul Tudor Jones saw Bitcoin as a hedge. Bitcoin’s recent lackluster performance may be starting to dampen institutional investors’ hopes of serving as an inflation hedge.”
Outumuro also on Twitter, bitcoinHe noted that the price of .
“Bitcoin is following the S&P 500 step by step today. After the high CPI inflation figures were announced at 8:30 am, BTC rose 2% but continued to fall as the markets opened. It doesn’t look very good for the inflation protection thesis…”
But not all metrics of BTC appear to be bearish, according to Outumuro. According to the researcher, Bitcoin’s weekly exit exchanges hit a five-month high last week, with nearly $3 billion worth of BTC exiting centralized exchanges. Stock market breakouts could be bullish as the metric shows that BTC investors are intent on holding crypto assets.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.