Nearly six years after initially reaching the $20,000 milestone, Bitcoin’s value has remained at that level when adjusted for inflation.
Data from various sources, including the U.S. Inflation Calculator, indicates that the performance of BTC’s price has essentially stagnated since 2017.
While Bitcoin has fluctuated around the $20,000 mark since marking it as an all-time high in 2017, its value against the USD surged as high as $69,000 during the interim period.
However, considering inflation, the narrative around BTC’s price action takes on a different hue.
As of August 25, 2023, the value of $20,000 worth of BTC purchased in 2017 has appreciated to $24,942.
To put it differently, the current spot price of Bitcoin, which is $26,050 according to data from Cointelegraph Markets Pro and TradingView, reflects six years of relatively unchanging BTC price dynamics.
BTCGandalf, the anonymous marketing officer at Bitcoin mining firm Braiins, remarked on this development during the week, acknowledging that, when adjusted for inflation, Bitcoin is only slightly above its 2017 market peak.
Commentators on X platform further observed that this calculation was based on official inflation statistics, implying that in actuality, the value of BTC/USD might even be lower than during its previous cycle peak.
Some humorously concluded that these figures underscored Bitcoin’s capacity to serve as a store of value.
BTCGandalf added that they were taken aback by the limited attention this matter had received.
Simultaneously, the United States’ national debt has reached a staggering $32.7 trillion, while concerns about U.S. inflation continue to be of paramount interest for risk-focused investors, including those involved in cryptocurrencies.
With official data signaling a deceleration in inflation, hopes are pinned on the Federal Reserve to align economic policies with the perceived reality.
READ MORE: Bitget Cryptocurrency Exchange Enhances KYC Procedures to Align with Global Regulations
On August 25, Fed Chair Jerome Powell is slated to present a policy statement at the annual Jackson Hole Economic Symposium, an event that is being closely monitored by those anticipating a deviation from Bitcoin’s current price status quo.
Keith Alan, co-founder of monitoring resource Material Indicators, indicated a preparedness for potential lows and volatile fluctuations, suggesting that a double bottom could potentially set the stage for recovery, despite the possibility of further downward movement.
A corresponding chart depicted the BTC/USD order book on Binance, highlighting a scarcity of substantial liquidity beyond $25,000, thereby increasing the likelihood of rapid and significant price shifts.
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