Bitcoin is not an inflation hedge tool, but performs stronger when the dollar weakens. This summary is generated by AI. Research shows that inflation has little impact on Bitcoin prices, while a weaker dollar is more likely to drive up Bitcoin and gold. Bitcoin has a negative correlation with the dollar and is closely related to interest rates and money supply, serving as a marker of liquidity conditions. According to Odaily, Greg Cipolaro, head of research at NYDIG, indicated that inflation does not significantly affect Bitcoin prices, while a weaker dollar can drive up both Bitcoin and gold prices. He pointed out that although the market often views Bitcoin as "digital gold" or an inflation hedge asset, the data does not fully support this view, and the correlation between Bitcoin and inflation indicators is unstable and low. Cipolaro stated that Bitcoin has a negative correlation with the dollar index, a trend that, although newer than gold, is gradually strengthening. It is expected that as Bitcoin further integrates into the traditional financial system, its inverse relationship with the dollar will become more apparent. In addition, he believes that interest rates and money supply are the main macro factors affecting the trends of Bitcoin and gold—generally, loose monetary policy and lower interest rates are favorable for Bitcoin price increases. He concluded that gold plays more of a role as a "real interest rate hedge tool," while Bitcoin has evolved into a "liquidity barometer" reflecting the global liquidity situation. (CoinTelegraph)