Bitcoin (BTC) has lost its acclaim as a hedge against inflation and other unfavorable macroeconomic conditions. Following several victories against rising inflation, Bitcoin later succumbed to the effects of macro like all other risk assets. Gemini co-founder Tyler Winklevoss thinks this is because the asset is still at infancy.
Tyler Winklevoss believes BTC is still at its infant stage
Tyler Winklevoss made this assertion on Twitter in the late hours of Tuesday. He highlighted the fact that BTC had fallen in tandem with other digital assets due to the recent U.S. CPI data reveal. The recent CPI data indicated that inflation cooled in August.
Bitcoin is down on the news that inflation for August came in higher than expected (8.3% instead of 8.1%). Bitcoin should be up today. Its properties dictate that it should be inversely correlated to inflation. The fact that it is down shows just how early it is.
— Tyler Winklevoss (@tyler) September 13, 2022
Inflation rate decreased from 8.5% in July to 8.3% in August. Notwithstanding, the value of 8.3% is slightly higher than the predicted 8.1%. Furthermore, the 8.3% rate is a massive increase year-on-year, as it signifies a rise from the 5.3% rate in August of 2021.
As the inflation rate indicates a worse-than-expected value, the crypto markets’ recent rally lost momentum. BTC is not immune to this rejection.
Bitcoin should be up today. Its properties dictate that it should be inversely correlated to inflation. The fact that it is down shows just how early it is,
Winklevoss said.
Scaramucci also believes Bitcoin is not mature enough to hedge against inflation
Winklevoss’ assertion is similar to SkyBridge Capital’s Anthony Scaramucci‘s previous comments on BTC serving an inflation hedge. As previously reported, last month, Scaramucci mentioned that BTC is not mature enough to hedge against inflation.
Despite previous counter claims, Scaramucci is renowned for going against the “BTC is a hedge against inflation” argument. His recent remarks asserted that the asset does not have the required wallet bandwidth to hedge against inflation.
Despite maintaining a value above $20k, BTC has declined by 6.25% in the past 24 hours. The rejection has taken off most of the gains amassed during the recently engineered rally. At the time of reporting, Bitcoin currently trades at $20,806, up 5.21% in the past week.
Abigal .V. is a cryptocurrency writer with over 4-years of writing experience. She focuses on news writing, and is skilled in sourcing hot topics. She’s a fan of cryptocurrencies and NFTs.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.