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Gary Gensler. IMF and World Economic Forum. Inflation.
If the crypt were Arya Stark from Game of Thrones, these boogeymen would be high on her death list.
Why not add fuel to the fire?
Despite popular belief, Bitcoin has never actually returned to its all-time high set in November 2021, all because of inflation.
What was then Bitcoin’s all-time high of $68,998 would be the equivalent of $77,975 in today’s money.
According to the US Consumer Price Index, cumulative inflation for almost three years was 13%.
So, after adjusting for inflation, Bitcoin would still need to rise more than $9,100 to break this price record—a 14% jump.
Without adjusting for inflation, the price of Bitcoin is just $4,900, or 6.7%.
Inflation never stops, which is why Bitcoin’s inflation-adjusted all-time high continues to rise over time.
When Bitcoin hit a local high in March, the figure was $76,744, meaning it actually stopped about 4% below the peak of $73,738.
The same goes for ether and solana. ETH’s price of $2,490 is actually 55% below the current inflation-adjusted price record of $5,513.
To break the all-time high in March, ETH would have to reach $5,426. So, when the price hit $4,090, it was actually 22% down, not 14%.
SOL is currently 44% below its adjusted all-time high of $294, and was 28% lower in March.
What does this all mean? It is unlikely that cryptocurrency will break away from the rest of the financial world and consider only inflation-adjusted prices as the true value of assets.
Although there are arguments for doing this during periods of high inflation, as there was in the years during and after the worst of the pandemic.
More importantly, it’s just more proof that inflation really is taking the fun out of everything, including Bitcoin’s all-time highs.
