Bitcoin (BTC) has maintained a value of $20,000, taking inflation into account, almost six years after it initially reached that price, according to data from various sources. While BTC/USD has hovered around the $20,000 mark since becoming an all-time high in 2017, it has reached as high as $69,000 in the interim. This means that the price action of Bitcoin appears relatively stagnant when inflation is factored in. As of August 25, 2023, $20,000 worth of BTC bought in 2017 would be worth $24,942 today.
The current spot price of Bitcoin is $26,050, indicating that the price of BTC has remained practically unchanged over the past six years. BTCGandalf, the anonymous marketing officer at Bitcoin mining company Braiins, acknowledged that “in inflation adjusted dollars, bitcoin is barely above the 2017 market peak.” This calculation is based on official inflation data, suggesting that in real terms, BTC/USD might be even lower than its previous peak.
Some observers noted that these numbers highlight Bitcoin’s ability to serve as a store of value. BTCGandalf expressed surprise that this issue had not received more publicity. In comparison, the national debt in the United States currently exceeds $32.7 trillion.
Investors in risk assets, including cryptocurrencies, are closely monitoring United States inflation. They are hopeful that the Federal Reserve will align economic policies with the perceived reality as official data shows signs of a slowdown. Fed Chair Jerome Powell is scheduled to make a policy statement at the annual Jackson Hole Economic Symposium on August 25. Many believe that this event could potentially break the current status quo of the BTC price.
There are expectations of a test of the lows and potential volatility in the market. Keith Alan, co-founder of monitoring resource Material Indicators, stated that “a double bottom is a good foundation to bounce. A lower low paves the way to bearadise.” He also shared a chart showing the BTC/USD order book on Binance, which displayed a lack of significant liquidity above $25,000, thus increasing the likelihood of rapid price movements.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.
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