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Bitcoin's performance during periods of global inflation has been mixed. While some investors view it as a hedge against inflation, its high volatility has led to significant price fluctuations. For instance, in 2022, Bitcoin's price fell by 59%, declining 72% from its all-time high in November 2021. This decline coincided with a broader downturn in risky assets, including equities, as central banks raised interest rates to combat rising inflation. Historically, Bitcoin has shown a strong correlation with the stock market, particularly technology stocks, behaving similarly to other risk assets. Therefore, during inflationary periods, Bitcoin has not consistently acted as a safe haven, often mirroring the performance of traditional equity markets.
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