Galaxy Digital’s head of research, Alex Thorn, highlighted on December 23, 2025, that Bitcoin (BTC)’s nominal peak above $126,000 in October adjusts to $99,848 in 2020 dollars when accounting for inflation, per Cointelegraph and CoinDesk. Using Consumer Price Index (CPI) data from early 2020, before massive monetary expansion, Thorn’s calculation shows BTC never crossed the $100,000 threshold in real terms. This distinction between nominal and inflation-adjusted prices offers a nuanced view of Bitcoin’s performance, emphasising its resilience amid dollar devaluation.
U.S. CPI inflation has eroded the dollar’s purchasing power by approximately 20–25% since 2020, with goods now 1.25 times more expensive, per BLS data and Thorn’s analysis. The Dollar Index (DXY) fell 11–12% in 2025, hitting lows around 97.8, reflecting broader fiat weakening, per TradingView. Bitcoin’s nominal gains remain impressive, outpacing traditional assets, but Thorn’s adjustment using 2020 dollars as a base provides context for real value growth, per Galaxy Research.
Thorn’s insight suggests Bitcoin’s rally from 2022 lows has been less parabolic than nominal figures indicate, implying reduced froth and potential for further upside, per CoinDesk. With BTC trading around $87,000–$88,000 currently, per CoinMarketCap, the inflation-adjusted view reinforces Bitcoin’s role as a hedge against currency debasement. Analysts note this could attract long-term holders, as Bitcoin continues to outperform inflation over extended periods.
The debasement trade favouring assets like Bitcoin amid fiat erosion gains traction, with BTC’s $1.74T market cap underscoring its strength, per. Institutional adoption and ETF inflows support sustained growth, potentially pushing BTC toward new nominal highs in 2026, per. Investors should focus on real returns while monitoring CPI reports via bls.gov. Bitcoin’s trajectory remains promising, blending nominal milestones with robust inflation-adjusted performance.
