Despite reaching an all-time high exceeding $126,000 in October, Bitcoin's value, when adjusted for inflation, never surpassed $100,000, according to Alex Thorn, head of research at Galaxy. Thorn revealed that the peak price, when calculated in 2020 dollars, stood at $99,848.
This analysis takes into account the decline in purchasing power as represented by the Consumer Price Index (CPI), which tracks inflation through a selection of goods and services. The CPI, reported in November, noted a 2.7% increase over the past year, highlighting that the dollar has lost approximately 20% of its value since 2020.
Currently, goods are priced at 1.25 times higher than they were in 2020, with a dollar today only purchasing about 80% of what it could back then. Inflation rates soared above 9% in mid-2022 and continue to exceed the Federal Reserve's 2% target.
The decline of the US dollar is also evident, with the Dollar Currency Index (DXY) falling 11% this year, reaching a three-year low.