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Bitcoin's True Driver: Not Inflation, But a Weakening Dollar, Says NYDIG

Bitcoin's Driver: Weakening Dollar, Not Inflation

Dario Cesaro avatar
Written by Dario Cesaro
Updated this week

Contrary to popular belief, Bitcoin does not act as a reliable hedge against inflation. Instead, research from NYDIG suggests that the cryptocurrency's price movements are more closely tied to the fluctuations of the U.S. dollar. When the dollar weakens, Bitcoin, much like gold, tends to see a price increase.

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