Viewpoint: When Bitcoin breaks the six-figure price, inflation dilutes actual purchasing power

According to Cryptoslate, the Bitcoin price breaking $100,000 this year has sparked celebrations in the market, but Galaxy's research director Alex Thorn pointed out that when adjusted for inflation based on 2020 dollar purchasing power, the actual purchasing power of Bitcoin at $100,000 is only equivalent to about $80,000 in 2020.

Since 2020, the U.S. CPI has risen from 258.8 to over 320, significantly eroding dollar purchasing power. To reach a true $100,000 (2020 purchasing power), the market price would need to be around $125,000. However, Bitcoin did approach this level during the 2025 cycle peak, but then fell back by about 30%.

Analysts believe that the next true milestone for Bitcoin has been continuously pushed higher due to inflation, and investors should focus on actual purchasing power rather than nominal figures.