Bitcoin Not 'Digital Gold' Against Inflation, Says NYDIG

Bitcoin Not 'Digital Gold' Against Inflation, Says NYDIG Research

Written by Aaron S.,

Editor-In-Chief

Last Updated: October 27, 2025

Key Takeaways

NYDIG finds no strong or consistent link between Bitcoin’s price and inflation or inflation expectations, despite common claims;
Gold also falls short as a reliable inflation hedge, and often moves unpredictably in relation to rising prices;
Bitcoin tends to rise when the US dollar weakens and acts more like a liquidity indicator than an inflation shield.

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According to research from NYDIG, Bitcoin BTC $115,278.25 does not reliably rise in response to inflation, despite common belief.

Greg Cipolaro, head of research at NYDIG, explained that while Bitcoin is often described as a hedge against inflation, the data does not support this idea.

He noted that Bitcoin’s price does not show a consistent relationship with inflation rates. Even when looking at inflation expectations, how people think prices will change in the future, the connection remains weak.

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This runs counter to the idea held by many Bitcoin supporters that the asset is "digital gold" and protects against inflation because of its limited supply and its operation outside central banks.

Cipolaro also questioned gold’s reputation as an inflation hedge. Although many investors turn to gold during periods of rising prices, its historical performance does not consistently back this strategy. In fact, gold’s price has often moved in the opposite direction from inflation.

Similarly, when the dollar weakens, Bitcoin often increases in value. While this relationship is newer and less stable than gold’s, NYDIG believes it is likely to become stronger as Bitcoin becomes more integrated into mainstream finance.

Cipolaro concluded that gold mainly acts as a hedge against changes in real interest rates, while Bitcoin behaves more like an indicator of liquidity in the financial system.

Despite growing interest from financial institutions, Bitcoin remains vulnerable to price drops, according to BitMine chairman Tom Lee. How? Read the full story.