Bitcoin could be worth less than K in 2023, US inflation data says

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 price “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.

<em>BTC/USD 1-month chart. Source: TradingView</em>

“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 he was “surprised” that the issue had not received much publicity.

According to U.S. Debt Clock, national debt currently stands at over $32.7 trillion.

<em>U.S. Inflation Calculator data (screenshot). Source:&nbsp;</em>

Bitcoin “bearadise” may come after Jackson Hole

U.S. 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.

<em>BTC/USD order book data for Binance. Source: Keith Alan/X</em>

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.