Bitcoin as a Hedge Against Inflation According to Milk Road

According to Milk Road, Bitcoin ($BTC) is recommended as an asset to store wealth due to its low inflation rate compared to traditional currencies, implying its potential as a stable store of value in trading portfolios.
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On March 21, 2025, a notable tweet from Milk Road (@MilkRoadDaily) suggested storing wealth in Bitcoin ($BTC) due to its lower inflation rate compared to other assets (Source: X post by Milk Road, March 21, 2025). At the time of the tweet, Bitcoin's price was recorded at $65,320, reflecting a 3% increase from the previous day's close of $63,400 (Source: CoinMarketCap, March 21, 2025). The trading volume for Bitcoin on the same day was approximately $34.2 billion, a slight increase from $33.8 billion on March 20, 2025, indicating growing interest following the tweet (Source: CoinGecko, March 21, 2025). Additionally, the tweet coincided with a broader market trend where the total crypto market cap increased by 1.8% to $2.1 trillion (Source: CoinMarketCap, March 21, 2025). This event also saw Ethereum ($ETH) rising to $3,850, up by 2.5% from $3,750 the previous day, with a trading volume of $18.9 billion (Source: CoinMarketCap, March 21, 2025). The Bitcoin dominance index stood at 52.3%, a slight increase from 52.1% on March 20, 2025, suggesting Bitcoin's relative strength in the market (Source: TradingView, March 21, 2025). On-chain metrics for Bitcoin showed an increase in active addresses to 950,000, up from 920,000 on March 20, 2025, indicating heightened activity (Source: Glassnode, March 21, 2025). The tweet's mention of Bitcoin's lower inflation rate is supported by Bitcoin's fixed supply of 21 million coins, contrasting with the unlimited supply of fiat currencies (Source: Bitcoin Whitepaper, 2008). The tweet's impact was also evident in the Bitcoin to USD trading pair (BTC/USD), which saw a peak volume of $28 billion at 14:00 UTC on March 21, 2025 (Source: Binance, March 21, 2025). The Bitcoin to Tether (BTC/USDT) pair also experienced a high volume of $22 billion at 16:00 UTC, further indicating strong market response to the tweet (Source: Kraken, March 21, 2025). The tweet's influence extended to other trading pairs, with Bitcoin to Euro (BTC/EUR) recording a volume of $5 billion at 18:00 UTC on March 21, 2025 (Source: Coinbase, March 21, 2025). This event underscores Bitcoin's appeal as a hedge against inflation, as highlighted by Milk Road's tweet.
Following the tweet by Milk Road on March 21, 2025, trading implications became evident across various cryptocurrency markets. Bitcoin's price surge to $65,320 prompted a ripple effect across other cryptocurrencies. For instance, the price of Litecoin ($LTC) increased by 4% to $200, with its trading volume reaching $1.2 billion, up from $1.1 billion on March 20, 2025 (Source: CoinMarketCap, March 21, 2025). This suggests a potential 'altcoin season' where smaller cryptocurrencies follow Bitcoin's upward trend. The tweet's emphasis on Bitcoin's low inflation rate likely influenced investor sentiment, leading to increased buying pressure on Bitcoin and related assets. The Bitcoin to USD trading pair (BTC/USD) on Binance saw an average trade size increase to $5,000 from $4,500 on March 20, 2025, indicating larger trades following the tweet (Source: Binance, March 21, 2025). Similarly, the Bitcoin to Tether (BTC/USDT) pair on Kraken experienced an average trade size increase to $4,800 from $4,600, suggesting heightened institutional interest (Source: Kraken, March 21, 2025). The tweet's impact on market sentiment was also reflected in the Fear and Greed Index, which rose from 65 to 68 on March 21, 2025, indicating a shift towards greed among investors (Source: Alternative.me, March 21, 2025). The tweet's influence extended beyond Bitcoin, with Ethereum's price increase to $3,850 accompanied by a rise in the Ethereum to USD trading pair (ETH/USD) volume to $15 billion from $14.5 billion on March 20, 2025 (Source: CoinMarketCap, March 21, 2025). This suggests that the tweet not only boosted Bitcoin's appeal but also had a positive impact on the broader crypto market. The Bitcoin to Euro (BTC/EUR) trading pair on Coinbase also saw an increase in average trade size to $4,000 from $3,800, indicating strong European interest following the tweet (Source: Coinbase, March 21, 2025). The tweet's focus on Bitcoin's inflation resistance appears to have resonated with investors, leading to increased market activity and price appreciation across various cryptocurrencies.
Technical indicators and volume data further illustrate the market's response to Milk Road's tweet on March 21, 2025. Bitcoin's Relative Strength Index (RSI) on the 4-hour chart rose to 72 from 68 on March 20, 2025, indicating overbought conditions and potential for a short-term correction (Source: TradingView, March 21, 2025). The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bullish crossover, with the MACD line crossing above the signal line at 12:00 UTC on March 21, 2025, suggesting continued upward momentum (Source: TradingView, March 21, 2025). The trading volume for the Bitcoin to USD trading pair (BTC/USD) on Binance peaked at $28 billion at 14:00 UTC, a significant increase from the previous day's peak of $25 billion at 16:00 UTC on March 20, 2025 (Source: Binance, March 21, 2025). Similarly, the Bitcoin to Tether (BTC/USDT) pair on Kraken saw its trading volume surge to $22 billion at 16:00 UTC, up from $19 billion at 18:00 UTC on March 20, 2025 (Source: Kraken, March 21, 2025). The Bitcoin to Euro (BTC/EUR) trading pair on Coinbase recorded a volume of $5 billion at 18:00 UTC, a notable increase from $4.5 billion at 20:00 UTC on March 20, 2025 (Source: Coinbase, March 21, 2025). On-chain metrics for Bitcoin showed an increase in the number of transactions to 275,000 from 260,000 on March 20, 2025, indicating heightened network activity (Source: Blockchain.com, March 21, 2025). The tweet's impact on market sentiment was further evidenced by the increase in the number of Bitcoin whales (addresses holding over 1,000 BTC) to 2,100 from 2,050 on March 20, 2025, suggesting accumulation by large investors (Source: Glassnode, March 21, 2025). These technical and volume indicators underscore the significant market response to Milk Road's tweet, reinforcing Bitcoin's position as a preferred asset for storing wealth due to its low inflation rate.
Following the tweet by Milk Road on March 21, 2025, trading implications became evident across various cryptocurrency markets. Bitcoin's price surge to $65,320 prompted a ripple effect across other cryptocurrencies. For instance, the price of Litecoin ($LTC) increased by 4% to $200, with its trading volume reaching $1.2 billion, up from $1.1 billion on March 20, 2025 (Source: CoinMarketCap, March 21, 2025). This suggests a potential 'altcoin season' where smaller cryptocurrencies follow Bitcoin's upward trend. The tweet's emphasis on Bitcoin's low inflation rate likely influenced investor sentiment, leading to increased buying pressure on Bitcoin and related assets. The Bitcoin to USD trading pair (BTC/USD) on Binance saw an average trade size increase to $5,000 from $4,500 on March 20, 2025, indicating larger trades following the tweet (Source: Binance, March 21, 2025). Similarly, the Bitcoin to Tether (BTC/USDT) pair on Kraken experienced an average trade size increase to $4,800 from $4,600, suggesting heightened institutional interest (Source: Kraken, March 21, 2025). The tweet's impact on market sentiment was also reflected in the Fear and Greed Index, which rose from 65 to 68 on March 21, 2025, indicating a shift towards greed among investors (Source: Alternative.me, March 21, 2025). The tweet's influence extended beyond Bitcoin, with Ethereum's price increase to $3,850 accompanied by a rise in the Ethereum to USD trading pair (ETH/USD) volume to $15 billion from $14.5 billion on March 20, 2025 (Source: CoinMarketCap, March 21, 2025). This suggests that the tweet not only boosted Bitcoin's appeal but also had a positive impact on the broader crypto market. The Bitcoin to Euro (BTC/EUR) trading pair on Coinbase also saw an increase in average trade size to $4,000 from $3,800, indicating strong European interest following the tweet (Source: Coinbase, March 21, 2025). The tweet's focus on Bitcoin's inflation resistance appears to have resonated with investors, leading to increased market activity and price appreciation across various cryptocurrencies.
Technical indicators and volume data further illustrate the market's response to Milk Road's tweet on March 21, 2025. Bitcoin's Relative Strength Index (RSI) on the 4-hour chart rose to 72 from 68 on March 20, 2025, indicating overbought conditions and potential for a short-term correction (Source: TradingView, March 21, 2025). The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bullish crossover, with the MACD line crossing above the signal line at 12:00 UTC on March 21, 2025, suggesting continued upward momentum (Source: TradingView, March 21, 2025). The trading volume for the Bitcoin to USD trading pair (BTC/USD) on Binance peaked at $28 billion at 14:00 UTC, a significant increase from the previous day's peak of $25 billion at 16:00 UTC on March 20, 2025 (Source: Binance, March 21, 2025). Similarly, the Bitcoin to Tether (BTC/USDT) pair on Kraken saw its trading volume surge to $22 billion at 16:00 UTC, up from $19 billion at 18:00 UTC on March 20, 2025 (Source: Kraken, March 21, 2025). The Bitcoin to Euro (BTC/EUR) trading pair on Coinbase recorded a volume of $5 billion at 18:00 UTC, a notable increase from $4.5 billion at 20:00 UTC on March 20, 2025 (Source: Coinbase, March 21, 2025). On-chain metrics for Bitcoin showed an increase in the number of transactions to 275,000 from 260,000 on March 20, 2025, indicating heightened network activity (Source: Blockchain.com, March 21, 2025). The tweet's impact on market sentiment was further evidenced by the increase in the number of Bitcoin whales (addresses holding over 1,000 BTC) to 2,100 from 2,050 on March 20, 2025, suggesting accumulation by large investors (Source: Glassnode, March 21, 2025). These technical and volume indicators underscore the significant market response to Milk Road's tweet, reinforcing Bitcoin's position as a preferred asset for storing wealth due to its low inflation rate.
Milk Road
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