What we have witnessed to be very funny is those maximalists who try to convince everyone that bitcoin is a hedge for inflation. However, it was certainly made clear to everyone that this time of high inflation, bitcoin performed unsuccessfully and only during the time of low inflation where it performed like an inflation hedge hehe.
Well if bitcoin price remains close to $20k while other fiat currencies continue dumping in value that means it is a hedge against inflation because it doesn't need to soar to be a hedge. But it's too soon to say.
Additionally we are not just in an inflation alone these days. We have had inflation alone over the past couple of years and during that time
bitcoin went from $3k to $70k.Currently we are in a
recession with inflation which is entirely different. Meaning people can not earn enough money anymore (hence the recession) while price of everything keeps going up (hence the inflation).
That's not to mention the two ongoing wars on food and energy.
However, what if the dollar becomes stronger in demand while bitcoin dumps below $20k? DXY is an index of the dollar versus a basket of currencies. It has been going higher since more than 1 year.
Inflation has always been present, however, it is low inflation. Before 2022 inflation was lower than 3% in America and the effects of this was not a problem.
It is weak during recession and inflation, what is reality showing us? Also, if we do not know the amount of leverage that pumped bitcoin from $3k to $70k, we do not know what we are investing in.