Bitcoin Looks Below $100,000 When Adjusted for Dollar Inflation

Bitcoin remains at a crossroads when viewed through the lens of inflation. Adjusted for 2020 purchasing power, the digital currency is approximately US$ 99,848 – just below the psychological threshold of US$ 100,000. To match the nominal price to what would be equivalent levels at that time, it would need to reach US$ 125,000, revealing the silent impact of rising prices on the economy.

Inflation as a Puzzle for Investors

The key issue is not just where Bitcoin stands in absolute numbers, but what that number truly represents in real terms. Inflation acts as an invisible divider of value – what cost less five years ago now costs more today. For Bitcoin holders, this means that even record prices may not reflect real gains without considering this fundamental adjustment.

Citi Projections Indicate Divergent Scenarios

Citi analysts have built forward-looking models indicating significantly different trajectories by 2026. In the baseline scenario, they project a rise to US$ 143,000. But there is also an optimistic scenario where Bitcoin would reach US$ 189,000 – an enormous difference that illustrates how sensitive price forecasts are to small variations in market assumptions.

Market Capitalization in Focus, But Volatility Persists

Bitcoin’s actual market capitalization hit an impressive US$ 1.125 trillion, reflecting the magnitude the asset has achieved in the global financial ecosystem. However, this number coexists with contradictory signals: consistent redemptions from spot Bitcoin ETFs and price corrections that suggest caution among institutional investors.

The divergence between record numbers and capital outflows exposes a troubling truth of the current market – even with historic capitalization, confidence remains fragmented and uncertainties continue to weigh on allocation decisions.