Bitcoin price touched lows of $26,597 on Thursday, its lowest level since January last year, losing more than 8% as cryptocurrencies continue to sell-off.
According to data from CoinGecko, the cryptocurrency has since moved above $28k and currently hovers near $28,600. The BTC/USD pair is down about 4% on the day and 28% from its seven-day highs around $39k.Year-to-date, BTC is down 39%.
Saylor on BTC vs. other assets since August 2020
Despite Bitcoin’s price plummeting since its all-time high last November, MicroStrategy CEO Michael Saylor says the benchmark cryptocurrency remains the “best hedge against inflation.”
“Bitcoin is the best hedge against inflation. Since $MSTR announced its first BTC purchase August 11, 2020, bitcoin has appreciated 149%, outperforming Silver (-17%), Gold (-9%) Nasdaq (5%), S&P (18%), CPI (11.2%), M2 (19%), US Homes (28%), & PPI (33%),” Saylor tweeted on Thursday.
#Bitcoin is the best hedge against #Inflation.
Since $MSTR announced its first BTC purchase August 11, 2020, bitcoin has appreciated 149%, outperforming Silver (-17%), Gold (-9%) Nasdaq (5%), S&P (18%), CPI (11.2%), M2 (19%), US Homes (28%), & PPI (33%).
— Michael Saylor⚡️ (@saylor) May 12, 2022
US inflation data for April showed that the consumer price index (CPI) rose 8.3%, slightly lower than the year-over-year pace seen in March. However, it was still trending at near 40-year highs.
The US Federal Reserve has responded to the rising inflation with two rate hikes of 0.25% and 0.5%, and could yet go for a 0.75% hike in June. Downside pressure on the stock market could yet see crypto follow suit as short-term correlation rises.
Yet, MicroStrategy continues to hold onto its BTC purchases, with multiple dip-buys having brought its total haul to 129,218 BTC. Saylor has previously said the company has no plans to sell.
MicroStrategy purchased its Bitcoin at an average price of $30,700.