From Yahoo Finance: 2025-03-26 10:37:00

Inflation rates soared in 2022 and 2023 due to the pandemic and Russia’s actions, causing energy prices to surge. This led to a stock market decline, with the S&P 500 dropping 19.4% and the Nasdaq Composite plunging 33.1%.

Investors turned to Bitcoin as an inflation hedge. With a limited supply of 21 million coins, 94.5% already mined, Bitcoin’s effective inflation is lower than gold’s, making it a popular choice among long-term investors.

Though Bitcoin prices fell 64.8% in 2022, the drop was attributed to the cryptocurrency market’s unique challenges, not inflation. With improved market conditions in 2025, Bitcoin is seen as a credible inflation-fighting asset, offering stability as it matures.

The fourth halving cycle and new investment tools like the iShares Bitcoin Trust ETF have bolstered Bitcoin’s appeal as an inflation hedge. Though short-term volatility is expected, Bitcoin is increasingly viewed as a reliable store of value against inflation risks.

Investing in Bitcoin can provide an effective hedge against inflation, offering long-term value despite short-term price fluctuations. Analysts recommend diversifying portfolios with Bitcoin holdings and staying prepared for market volatility in the coming years.



Read more at Yahoo Finance: Worried Another Inflation Surge Is on the Horizon? 1 Excellent Crypto to Buy Right Now and Hold for Decades.