Researchers’ Work from Sao Paulo School Economics Focuses on Structure Research (Is Bitcoin an Inflation Hedge?): Structure Research

2025 MAR 24 (NewsRx) -- By a News Reporter-Staff News Editor at CDC & FDA Daily -- New research on Structure Research is the subject of a report. According to news reporting from Sao Paulo, Brazil, by NewsRx journalists, research stated, “Spot bitcoin ETFs have been recently approved in the U.S., increasing retail and institutional investors’ attention to crypto. To contribute to the debate on whether bitcoin protects against inflation, we analyze the effect of inflation shocks on bitcoin returns through the estimation and inference of Vector Autoregressive Models (VARs), identifying inflation shocks as surprises in the U.S.’s CPI and Core PCE announcements.”

Financial supporters for this research include Conselho Nacional de Desenvolvimento Cientifico e Tecnologico (CNPQ), Silicon Valley Community Foundation through the University Blockchain Research Initiative (UBRI).

The news correspondents obtained a quote from the research from Sao Paulo School Economics, “Based on monthly data between August 2010 and January 2023, the results indicate that bitcoin returns increase significantly after a positive inflationary shock, corroborating empirical evidence that bitcoin can act as an inflation hedge. However, we observe that bitcoin’s inflationary hedging property is sensitive to the price index - it only holds for CPI shocks - and to the period of analysis - the hedging property stems primarily from sample periods before the increasing institutional adoption of BTC (‘early days’). Notably, the inflation hedge property of bitcoin (Gold) has disappeared (strengthened) from the COVID-19 outbreak onwards.”

According to the news reporters, the research concluded: “We conclude that bitcoin’s inflation-hedging property is context-specific and likely diminishes as it achieves broader adoption and becomes more integrated into mainstream financial markets.”

This research has been peer-reviewed.

For more information on this research see: Is Bitcoin an Inflation Hedge? Structures, 2025;73. Structures can be contacted at: Elsevier Science Inc, Ste 800, 230 Park Ave, New York, NY 10169, USA.

Our news journalists report that additional information may be obtained by contacting Jefferson Colombo, Getulio Vargas Fdn Fgv Eesp, Sao Paulo School Economics, Sao Paulo, Brazil.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jeconbus.2024.106218. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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