The unrealized as well as realized losses have also spiked for the Bitcoin holders when the detractors continue questioning of the properties of hedging against inflation. As per on-chain analysis, BTC has seen some realized losses which have spiked to third biggest levels in the history. This kind of loss happens when the asset gets sale for the amount less that when it purchased.
It is comparatively different from the unrealized loss that is when holder yet to sell, though the price is comparatively below that purchase price. As per the chart, realized losses usually spiked higher at the time of volatile trading days of BTC. Moreover, there was some other spike observe during the month March where the pandemic and crash has observed.
Is Bitcoin at an inflation hedge?
With suppressed action of price action that has caused various market observers simply to question the BTC frequently has touted properties with inflation hedge. This will definitely be behaving at moment having also lost 70%. It has also seen inflation surge at highs of four-decade. On the other hand, U.S. government has also announced that CPI or even consumer price index, which that is the gauge for specific inflation. It increased to almost 9.1%, that beat the expectations related to 8.8% and marking greatest annual increase from 1981.
Also, for kind information CPI announcement for “Crypto Pain Index” gets Bitcoin dump 4.36% in hour which follow such announcement. Higher set of inflation in country is definitely bad news for various assets of high-risk. As, this erodes market sentiment with purchasing power. Hence, it will also be logical to confirm that BTC does not behave as inflation hedge. If there is anything, stablecoin will have also seen as the better lifeboat, particularly in the countries with highest inflation.
More pain before gains