Bitcoin's performance in a deflationary economy compared to inflationary cycles is nuanced. In deflationary periods, where prices fall and purchasing power rises, Bitcoin's fixed supply and scarcity could drive demand, potentially increasing its value as a store of wealth. Investors may flock to it as a hedge against economic stagnation or currency devaluation. However, in inflationary cycles, where money supply grows and prices rise, Bitcoin's appeal as an inflation-resistant asset often strengthens, especially if central banks overprint currency. Historical data shows Bitcoin thriving during high inflation (e.g., 2020-2022), but deflationary environments are less tested. Its volatility and speculative nature can overshadow macroeconomic trends, making outcomes unpredictable. Ultimately, Bitcoin's performance depends on market sentiment, adoption, and global economic policies rather than a clear edge in either cycle.