The $100,000 milestone for Bitcoin faces inflation adjustments
According to ChainCatcher, the rise of Bitcoin's price to $100,000 this year was celebrated by the market. However, Alex Thorn, head of research at Galaxy, highlights that when adjusting the value for inflation based on the purchasing power of the US dollar in 2020, the $100,000 value of Bitcoin equates to only about $80,000 in 2020 terms.
Since 2020, the US Consumer Price Index (CPI) has risen from 258.8 to over 320, significantly reducing the purchasing power of the dollar. To achieve a real value of $100,000 in 2020 purchasing power, the market price needs to reach around $125,000. Bitcoin approached this level at its peak in the 2025 cycle but then fell by about 30%.
Analysts suggest that the next important milestone for Bitcoin has been continuously adjusted upward due to inflation, and investors should focus on actual purchasing power rather than nominal figures.$BTC
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