Market Analysis - NYDIG's Greg Cipollaro states Bitcoin has evolved into a "liquidity barometer" [1] - Bitcoin thrives when the dollar weakens [1] - Bitcoin is not an inflation hedge [1]

Core Insights - Bitcoin is often referred to as "digital gold" and is marketed as a hedge against inflation, but recent data from NYDIG indicates that this narrative is not supported by strong evidence [1][2] - The correlation between bitcoin and inflation is found to be weak and inconsistent, challenging the traditional view that rising inflation boosts gold prices as well [2][3] Bitcoin and Gold Dynamics - Both bitcoin and gold are influenced more by real interest rates and money supply rather than inflation directly [3][4] - Bitcoin's inverse relationship with real interest rates has strengthened in recent years, suggesting its growing integration into the financial system [4] Investment Perspective - Investors are advised to reconsider the role of bitcoin, viewing it not as an inflation hedge but rather as a measure of global liquidity that responds to interest rates and capital flow [4][5] - Gold is characterized as a real-rate hedge, while bitcoin has evolved into a liquidity barometer [5]