Bitcoin could be worth less than $20K in 2023, US inflation data says
Bitcoin, taking inflation into account, has in fact been a solid store of value since 2017, commentators conclude.
Bitcoin (BTC) is still worth $20,000 nearly six years after first reaching it — if adjusted for inflation.
According to data from sources, including U.S. Inflation Calculator, BTC price performance has de facto stayed static since 2017.
BTC’s price is “barely above” 2017 old all-time high
While criss-crossing the $20,000 mark since tapping it as an all-time high in 2017, BTC/USD has gone as high as $69,000 in the meantime.
Taking inflation into account, however, the story of BTC price action looks remarkably different. As of Aug. 25, 2023, $20,000 worth of BTC purchased in 2017 is now worth $24,942.
Put another way, the current Bitcoin spot price — $26,050 per data from Cointelegraph Markets Pro and TradingView — reflects six years of practically static BTC price action.
“In inflation adjusted dollars, bitcoin is barely above the 2017 market peak,” BTCGandalf, the anonymous marketing officer at Bitcoin mining company Braiins, acknowledged on the topic this week.
Responses on X further noted that this calculation was based on official inflation numbers, meaning that in real terms, BTC/USD may even be lower than its previous cycle peak.
Others concluded — perhaps wryly — that the numbers underscored Bitcoin’s ability to function as a store of value, while BTCGandalf added that they were “surprised” that the issue had not received much publicity.
According to U.S. Debt Clock, national debt currently stands at over $32.7 trillion.
Bitcoin “bearadise” may come after Jackson Hole
United States inflation, meanwhile, continues to be a central focus for risk asset investors, including crypto bulls.
Related: Bitcoin on the way to ‘bearadise?’ $20K is back as a BTC price target
With official data pointing to a slowdown, hopes are being pinned on the Federal Reserve to match economic policy with perceived reality.
On Aug. 25, Fed Chair Jerome Powell will deliver a statement on policy at the annual Jackson Hole Economic Symposium — an event keenly eyed by those looking for a break of the current BTC price status quo.
“Prepared for a test of the lows and the potential for some whipsaw volatility,” Keith Alan, co-founder of monitoring resource Material Indicators, wrote in part of an X post on the day.
“A double bottom is a good foundation to bounce. A lower low paves the way to bearadise.”
An accompanying chart showed the BTC/USD order book on Binance still lacking significant liquidity above $25,000, increasing the chances of rapid moves.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
