There is a lot of noise about cryptocurrencies like Bitcoin and Ethereum being hedges against inflation.
Here is Bitcoin against core PCE prices YoY. Only if inflation is truly transitory and declines.
Ethereum as a hedge against inflation? Ethereum started its run-up after Q1’s inflation report. And has experienced extraordinary volatility, not inflation-hedging mojo.
In short, Bitcoin’s and Ethereum’s inflation hedging mojo isn’t working. At best, it’s muddy.
