Bitcoin is a hedge against monetary debasement (money printing). Bitcoin is unaffected by and cannot hedge against supply/demand shocks in market goods or other commodities.
Price volatility is heavily driven by Wall Street and retail speculators.
Bitcoin was about $10k when the money printer was turned on for COVID in March 2020. Bitcoin is still up 90% since then. Working exactly as expected.
In order to hedge against monetary debasement, you must acquire the hedge (buy Bitcoin) BEFORE debasement occurs.
It was driven up far higher by speculative FOMO. A lot of BTC newbs got in during that FOMO.
Bitcoin price is declining now that the Wall Street speculation has dried up. And can go lower as the money printer goes in reverse… exactly the way bitcoin is expected to work.
Bitcoin adoption is a separate driver of price/demand growth and Bitcoin will continue to trend higher in the long run (years & decades) as adoption grows.
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