US Inflation Data Says Bitcoin Will Be Worth Less Than $20K In 2023

(CTN News) – In the world of cryptocurrencies, Bitcoin BTC $26,101 is still worth $20,000 nearly six years after it was first reached – when inflation is taken into account.

According to data from sources such as the U.S. Inflation Calculator, BTC price performance has remained stable since 2017.

Bitcoin’s price is “barely above” the 2017 record high

As the Bitcoin/USD exchange rate crosses over the $20,000 mark for the second time since hitting it as an all-time high in 2017, it has gone as high as $69,000 in the meantime.

If you take inflation into account, however, there is a remarkably different story to be told about BTC’s price movement. A bitcoin purchase of $20,000 worth of BTC in 2017 is now worth $24,942 as of August 25, 2023.

A more accurate way of saying it is that the current Bitcoin spot price – $26,050 based on data from Cointelegraph Markets Pro and TradingView – represents six years of essentially static bitcoin prices.

In terms of inflation-adjusted dollars, bitcoin is barely above the market peak in 2017,” BTCGandalf, the anonymous marketing officer at Bitcoin mining company Braiins, stated on the topic this week.

A number of responses on X also noted that this calculation was based on official inflation figures, meaning that, in reality, the BTC/USD rate may even be lower than it was at the peak of the last cycle.

Some commentators concluded – perhaps with a wry smile – that the figures prove Bitcoin’s ability to serve as a store of value, while BTCGandalf added that they were “surprised” the issue had not been covered more extensively.

According to the U.S. debt clock, the U.S. has a national debt of over $32.7 trillion at present.

After Jackson Hole, Bitcoin may reach its “bearadise”

For investors in risk assets, including crypto bulls, the inflation rate in the United States has continued to be a primary concern.

In the light of official data pointing to a slowdown, many are hoping that the Federal Reserve will be able to match economic policies with perceived realities as soon as possible.

On August 25, Fed Chair Jerome Powell will deliver his first statement on policy at the annual Jackson Hole Economic Symposium, an event eagerly anticipated by those looking for a break in the current BTC price status quo as he prepares to deliver a statement on policy.

Keith Alan, co-founder of the monitoring resource Material Indicators, stated in part of an X post on the day, “Be prepared for a test of the lows and whipsaw volatility.”

SEE ALSO:

Pakistan High Court Delays Ruling on Imran Khan’s Appeal