Bitcoin's Hedging Capabilities Revisited

Inflation has recently become a phenomenon of both global concern and interest. Thus, it is of increasing importance to distinguish which assets perform well under the current inflationary circumstances. This study leverages event-study techniques to investigate how Bitcoin prices move with inflation in comparison to stock indices on a multi-market level. I find no strong confirmation of Bitcoin’s inflation hedging capabilities, although it performs relatively better than the stock index over the pe- riod of time considered. Additionally, volatility in Bitcoin market does not seem very responsive to either inflationary events or surprises