TLDR
- Galaxy’s Alex Thorn says Bitcoin peaked at $99,848 when adjusted for inflation.
- Bitcoin hit over $126,000 in nominal terms during its October price high.
- US dollar purchasing power has dropped about 20% since 2020, CPI data shows.
- Thorn used CPI inflation data from 2020 to adjust Bitcoin’s price levels.
Bitcoin reached record highs in nominal terms in 2025, yet the milestone looks different after inflation adjustment. Galaxy Digital’s head of research, Alex Thorn, says Bitcoin never truly crossed $100,000 in real value. His analysis uses 2020 dollars and official inflation data. The claim challenges a popular narrative around Bitcoin’s price peak and refocuses attention on purchasing power rather than headline numbers.
Inflation-adjusted view reshapes Bitcoin’s record
Alex Thorn stated that Bitcoin’s all-time high changes when adjusted for inflation. He said Bitcoin peaked at $99,848 in 2020 dollar terms. The figure falls short of the symbolic $100,000 level.
Thorn explained his method during a public discussion on Tuesday. He adjusted Bitcoin’s price using inflation data from 2020 onward. The calculation accounts for declining dollar purchasing power over time.
https://twitter.com/coinbureau/status/2003695884119253228?s=20
“If you adjust the price of Bitcoin for inflation using 2020 dollars, BTC never crossed $100,000,” Thorn said. He added that the adjustment considers each inflation reading across the period. The method uses the Consumer Price Index as the reference.
Bitcoin reached a nominal peak above $126,000 in October. However, Thorn said the real value was lower once inflation was applied. The difference reflects changes in the value of money rather than price movement alone.
CPI data shows steady loss in dollar value
The Consumer Price Index tracks price changes across common goods and services. It is published by the U.S. Bureau of Labor Statistics. The index measures how inflation reduces purchasing power over time.
According to recent CPI data, inflation rose 2.7% over the past 12 months. The figure is not seasonally adjusted. The data shows that the dollar has lost about 20% of its value since 2020.
https://twitter.com/ecommerceshares/status/2001657030554108371?s=20
Today, prices are about 1.25 times higher than in 2020. A dollar now buys roughly 80% of what it could buy then. Thorn said this erosion plays a key role in evaluating asset prices.
Inflation surged during the COVID-19 period and peaked above 9% in mid-2022. Since then, inflation has eased but remains above the Federal Reserve’s 2% target. The ongoing pressure continues to affect real asset values.
Dollar weakness adds context to Bitcoin pricing
The U.S. dollar has weakened against other major currencies in 2025. The Dollar Currency Index tracks this movement. The index compares the dollar to a basket of global currencies.
Data from TradingView shows the index is down 11% this year. It currently sits near 97.8. The index reached a three-year low of 96.3 in September.
The dollar has trended lower since October 2022. This decline reflects shifting currency demand and macro conditions. A weaker dollar often changes how investors view asset prices.
Market participants often compare Bitcoin against fiat value erosion. Thorn’s analysis suggests that nominal price gains do not always reflect real gains. Inflation-adjusted figures offer a different lens.
Real value metrics gain attention among analysts
Thorn’s comments have drawn attention to inflation-adjusted pricing. Analysts increasingly look beyond nominal highs. Real value measures are used to compare assets across time.
The approach does not dispute Bitcoin’s price growth. Instead, it reframes the milestone using consistent dollar terms. This method is common in long-term economic analysis.
Bitcoin trades near $86,896 at the time of the discussion. Price levels continue to fluctuate with market conditions. Inflation remains a key variable in long-term valuation.
As inflation persists and currencies weaken, real price comparisons may gain wider use. Thorn’s statement adds to this discussion without changing reported market prices. It places focus on purchasing power rather than headline figures.
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