Overview
- NYDIG’s Oct. 26 research note concludes Bitcoin’s correlation with inflation is weak and inconsistent.
- The firm argues Bitcoin now acts as a gauge of market liquidity, whereas gold primarily hedges movements in real interest rates.
- Real rates, money supply and dollar strength better explain Bitcoin’s behavior, with gains more likely when the dollar weakens.
- NYDIG says Bitcoin’s sensitivity to real rates has strengthened as the asset integrates further into mainstream finance.
- Glassnode data reported by NewsBTC show about 62,000 BTC moved from illiquid wallets back into circulation in October, signaling potential sell-side pressure.