Galaxy denies Bitcoin ever reaching $100K after adjusting for inflation
Galaxy’s Head of Research, Alex Thorn, recently made an interesting revelation regarding the all-time high of Bitcoin in October, which surpassed $126,000. Thorn pointed out that when factoring in inflation, Bitcoin did not actually breach the $100,000 mark, as many believed. In terms of 2020 dollars, Thorn stated that Bitcoin never surpassed $100,000, reaching a peak of $99,848.
Thorn elaborated on the calculation behind this inflation-adjusted peak, highlighting the impact of the Consumer Price Index (CPI) on the purchasing power of the dollar. The CPI, compiled by the US Bureau of Labor Statistics, monitors fluctuations in prices for a range of goods and services. Thorn emphasized that this adjustment factors in the gradual decline in purchasing power from 2020 up to the present day.
Recent data from the Bureau of Labor Statistics revealed a 2.7% increase in the CPI over the last 12 months, excluding seasonal adjustments. Thorn’s analysis also underscored the broader erosion of purchasing power since 2020, with the dollar depreciating by approximately 20% during this period.
Additionally, Thorn drew attention to the weakening of the US dollar in 2025, citing the Dollar Currency Index (DXY) as evidence of an 11% decline year-to-date, resting at 97.8. In September, the DXY hit a three-year low of 96.3, reflecting ongoing weaknesses in the currency.
Thorn’s observations led to discussions about the concept of the “debasement trade,” highlighting the strategic response to the depreciating value of the US dollar. As the purchasing power of the dollar dwindles, investors and analysts consider alternative asset classes and hedges against inflation.
These insights shed light on the evolving landscape of cryptocurrency markets and the intricate relationship between Bitcoin’s price performance, inflation adjustments, and currency valuations. Thorn’s meticulous analysis offers a fresh perspective on the narrative surrounding Bitcoin’s historic price movements and the implications of inflation on asset valuations.
In conclusion, Thorn’s assessment serves as a timely reminder of the importance of considering inflation-adjusted figures in financial analysis and how fluctuations in currency values can impact investment decisions. As the cryptocurrency market continues to witness dynamic shifts, critical evaluations of price data and economic indicators are essential for informed decision-making in this rapidly evolving landscape.
