Bitcoin Price Never Actually Hit $100K in Inflation-Adjusted Terms

Bitcoin News

Bitcoin never crossed six figures when adjusted for inflation, despite reaching an all-time peak above $126,000 in October, according to Galaxy head of research Alex Thorn. The crypto topped at $99,848 in 2020 dollar terms after accounting for declining purchasing power.

Thorn

Tuesday his adjusted price high for Bitcoin factored in Consumer Price Index decline in purchasing power incrementally across every inflation print from 2020 to today. The CPI measures inflation through prices of a basket of goods and services, calculated by the US Bureau of Labor Statistics to track changes in spending habits.

The agency

in November that CPI rose 2.7% over the last 12 months on a non-seasonally adjusted basis. The dollar has lost around 20% of its value since 2020, decreasing purchasing power across the economy.

Goods today cost 1.25 times more than in 2020, according to CPI data. A dollar today buys roughly 80% of what it purchased back then, Thorn explained.

US inflation remains above the Federal Reserve's 2% target after skyrocketing past 9% in mid-2022 during the COVID-19 pandemic. The elevated inflation environment has persisted despite multiple rate hikes aimed at cooling price growth.