Bitcoin loses its lustre as a hedge against inflation Cryptocurrency's value down 40pc in the past month despite a spike in inflation 1 June 2021 • 12:19pm Bitcoin’s status as “digital gold” has been dealt a serious blow after the recent cryptocurrency rout coincided with a spurt of inflation. In May, Bitcoin fell from $58,000 to $35,600 - a 39pc decline - while inflation rose suddenly in Britain and the United States. Gold moved in the opposite direction to the cryptocurrency, rising 7pc in May to just over $1,900 an ounce. Bitcoin advocates argue that it has similar characteristics to gold and should perform well when inflation rises.