Bitcoin no work as inflation hedge, e dey follow dollar weakness
NYDIG research show say bitcoin no be reliable way to protect against inflation, as e get weak and two different connection wit CPI and PPI. Dis one dey challenge bitcoin role as inflation protector and e show say e don turn into liquidity indicator wey dey follow US dollar movement and monetary policy closely. When dollar index dey fall and real interest rates low, e dey boost bitcoin just like how gold dey behave when monetary policy dey easy. As bitcoin dey enter traditional finance more, im negative relationship wit dollar and sensitivity to money supply growth go strong. Traders suppose dey watch dollar index trends, interest rate changes, and global liquidity to sabi how bitcoin price go move.
Bullish
Di report tok say bitcoin dey respond pass to dollar weakness, lower real rates, and increased money supply, e show say di macro environment dey supportive. For short term, changes for dollar index and central bank policy fit cause bitcoin volatility and make e rise. For long term, continued monetary easing plus deeper join with traditional finance go make bitcoin liquidity-driven rally strong, and e outlook go dey generally bullish.