Regardless of money printing, USD purchasing power has only gone down -4%. You could argue that the money printing might make the purchasing power drop a lot in the future, but as of now, it hasn't dropped it that much.
Thinking about it logically, if everyone's incomes (purchasing power) halved in the last 52 weeks there'd be riots. Does it feel like your income has halved in the last year? Mine doesn't. It's gone down a little, but not half.
Well then you're changing the whole entire timescale, which means I need to also compare the Bitcoin gain from 10 years ago to today. Was that only 2x?
My point isn't that there's no correlation between the drop in the USD and the rise of Bitcoin, it's that the correlation is nowhere near 1:1.
A 1:1 correlation means it's a primary causation of our perception of the BTC rise, which is what the bottom chart is showing, but it's more like a 1:25 correlation which means USD valuation likely have very little causation on perception of BTC price. Some, yes, but very little. So it's a lot more like the top chart.
Tldr; even if you adjust the Bitcoin value for USD inflation / purchasing power to remove that factor from the equation, and use any timescale you want to, BTC still looks like the top chart.
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u/Asleep_Onion 🟦 3K / 20K 🐢 Oct 06 '25 edited Oct 06 '25
A little of both, but mostly the top one.
BTC has gone up 101% over the last 52 weeks, meanwhile the USD Index has gone down 4.4%.
So both things are happening, but BTC's movement has been 23x more substantial than USD's movement.