The real value of Bitcoin remains below 100,000 dollars despite the nominal increase recorded in the month of October. Alex Thorn, head of research at Galaxy Digital, recently noted that the record figure of 126,000 dollars does not break the psychological barrier if adjusted for purchasing power. Thorn’s analysis uses 2020 dollars to provide a much more precise and realistic economic perspective today.
According to the report from the bank’s official spokesperson, this year’s peak is equivalent to 99,848 constant dollars. Cumulative inflation in the United States reached 24% during the period between the years 2020 and 2025 currently. Therefore, direct price comparisons between different eras are often misleading for retail investors in the sector. Monetary distortion hides the real performance of the asset against the sustained increase in the cost of living.
Likewise, the choice of the year 2020 as a base responds to the Federal Reserve’s massive printing policies. The crypto market has reacted strongly to the expansion of global liquidity during the last five years of operations. However, hard data reveals that the asset still needs to travel an additional stretch to mark a genuine historical milestone. Nominal prices do not reflect the purchasing power that currency holders possess in the current global economy.
The gap between the nominal price and current market reality
On the other hand, this economic phenomenon generates mixed interpretations among the most prominent analysts in the financial technology sector. Optimistic investors suggest that the lack of a real parabolic excess indicates there is still room for substantial growth.
The absence of extreme euphoria in real terms could mean that the bull cycle has greater technical sustainability now. In this way, the alleged October bubble may have been much less risky than what the price charts indicated. The market could be preparing for an advance toward much more solid levels of truly unprecedented prices.
Nonetheless, critics argue that the inflation-adjusted performance questions the narrative of the currency as an absolute safe haven. The asset has not completely overcome the impact of the devaluation of the US dollar during the last financial lustrum.
Therefore, some participants suggest that gold remains a competitive alternative despite its own recent historical difficulties. Volatility in the crypto sector remains a factor determining for those looking to effectively protect their capital in the long term.
Is Bitcoin the ultimate hedge against global monetary devaluation today?
It is also essential to consider that institutional investor sentiment remains a key driver for the recovery of confidence. The maturation of the digital ecosystem will allow a better understanding of economic cycles adjusted for the consumer price index. If the nominal price manages to break 130,000 dollars soon, the asset would finally surpass the real six-figure mark.
Interest in exchange-traded funds could accelerate this process of real valuation in the coming months of the year. Thus, eyes are on the movements of the North American central bank.
To finalize, the current situation invites a deep reflection on how we measure financial success in the contemporary digital era. Asset performance must always be evaluated under the lens of inflation to avoid erroneous or hasty conclusions today.
Although Bitcoin shows enviable strength, psychological milestones must be validated with rigorous economic data and solid fundamentals. The community looks forward to a definitive confirmation that the currency has overcome all previous inflationary obstacles on the way. Undoubtedly, the path to a real 100,000 dollars is still being built.
