Bitcoin Nears $100K Adjustment When Inflation Is Considered
Despite Bitcoin reaching an all-time high of over $126,000 in October, recent analysis indicates that when adjusted for inflation, the cryptocurrency has not crossed the $100,000 threshold. Galaxy Research’s head of research, Alex Thorn, explains that accounting for inflation in 2020 dollars reveals Bitcoin’s true inflation-adjusted peak was below this benchmark.
Key Takeaways
Bitcoin’s nominal peak surpassed $126,000 in October 2023.
Adjusted for inflation, Bitcoin’s highest value in 2020 dollars was approximately $99,848.
The Consumer Price Index indicates a 2.7% inflation increase over the past year, diminishing the dollar’s purchasing power.
The US dollar has lost about 20% of its value since 2020, impacting how Bitcoin’s value is perceived in real terms.
Tickers mentioned: Bitcoin
Sentiment: Neutral
Price impact: Negative. When considering inflation, Bitcoin’s real value did not reach the six-figure mark, highlighting the importance of inflation-adjusted analysis.
US Inflation and Dollar Deterioration
According to official data, the Consumer Price Index—a measure of inflation based on the cost of a basket of goods—showed a 2.7% increase over the last year. This modest rise, however, belies the broader loss of purchasing power of the US dollar, which has declined by approximately 20% since 2020. Consequently, while Bitcoin’s nominal price soared, its inflation-adjusted value tells a different story.
Bitcoin’s nominal price did not translate to a six-figure valuation in inflation-adjusted terms. Source: Galaxy Research
The US Dollar’s Decline Continues
In 2025, the US dollar index (DXY) has fallen approximately 11% since the start of the year, reaching a three-year low of 96.3 in September and continuing its downtrend since October 2022. This decline has fuelled the “debasement trade,” where investors rotate into assets they believe will retain or increase in value as fiat currency loses purchasing power.
As dollar weakness persists, many anticipate that cryptocurrencies like Bitcoin could benefit from the ongoing devaluation, positioning them as potential hedges against inflation and currency debasement. While Bitcoin’s nominal rally remains impressive, its real purchasing power, when adjusted for inflation, suggests a more cautious perspective on its true value in a changing macroeconomic landscape.
This article was originally published as Galaxy Reveals Bitcoin Would Never Reach $100K When Adjusted for Inflation on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Suspected that Matrixport opened a $197 million BTC/ETH long position last month on an address, and is currently up $5 million
Gate News message: On April 10, according to monitoring by The Data Nerd, last month (March), a wallet address that is suspected to belong to Matrixport opened two long positions on BTC and ETH with a total value of about $197 million. As of now, the address shows an unrealized gain of about $5 million and still holds these positions.
GateNews14m ago
StarkWare researchers propose a QSB proposal, allowing Bitcoin to achieve post-quantum security without changing the protocol
StarkWare researchers proposed a quantum-safe Bitcoin scheme called QSB, aiming to replace the elliptic curve mechanism with hash assumptions to counter the threats posed by Shor’s algorithm. The scheme can run within existing scripts, requires no consensus changes, but does require submitting a transaction to a specific service.
GateNews1h ago
Morgan Stanley’s Bitcoin ETF had its first day of trading set a record for the firm, with more crypto products in the works
Gate News message, on April 10, the head of digital assets at Morgan Stanley said that the bank’s newly launched Bitcoin ETF (exchange-traded fund) delivered the best first-day trading performance among all the bank’s ETF products. In addition, the executive disclosed that Morgan Stanley is preparing additional crypto-related products.
GateNews1h ago
A giant whale opened a heavy short position on BTC last night and was liquidated in two rounds, with a total scale exceeding $43.3 million
On April 10, after BTC reached $72k, a whale starting with 0x2fc liquidated twice in a row at 40x leverage, totaling 423.4 BTC, or about $30.5 million. Due to a liquidation loss of $580k, the address opened a short position again and was liquidated again; it can currently support 67 short positions, with a liquidation price of $72,669.
GateNews1h ago
BTC 15-minute surge up 0.60%: whale transfers and ETF fund flows converge to drive a short-term rebound
2026-04-10 01:30 to 2026-04-10 01:45 (UTC), the BTC price rose from 71863.2 USDT to 72383.6 USDT. Within 15 minutes, the return was +0.60%, and the range reached 0.72%. During this period, market volatility was significant: spot buying orders on major exchanges were active in the short term, attention quickly heated up, and it showed a rapid price response driven by capital inflows.
The main driver behind this anomaly is that whale wallets, in early April, coordinated concentrated short-term transfers to trading platforms totaling 42,000 BTC, for this year’s
GateNews2h ago
The CIA plans to embed AI into all analytical platforms to assist with intelligence analysis and counterintelligence work
The U.S. CIA Deputy Director Michael Ellis said the CIA will incorporate AI into its analytical platforms over the next few years, but humans will still be the decision-makers. He mentioned a dispute with Anthropic and emphasized that competition between the U.S. and China in technology innovation is intensifying. AI and blockchain analytics will be key areas.
GateNews2h ago
