Bitcoin was in some aspect created to act as a hedge against inflation.
You've got it wrong, sorry. Bitcoin was created in order that you and me can make transactions easily without needing to trust + use Visa or the banks to validate that.
However it seems with FIAT going down, so is more of Bitcoin and other cryptos.
While this indeed happens now, it's not a relation, it's a coincidence.
Bitcoin price tends to go down after a couple of months after the ATH. Then, after some years, new, higher ATH came. It has already happened a couple of times.
Bitcoin was supposed to be here for our survival. Now it is becoming just a digital number on a computer screen that never had any value all along.
What am I missing here?
You have thought that Bitcoin is a get rich scheme. You thought that Bitcoin price only goes up. You.. didn't read enough before investing into bitcoin.
You could start by reading about Bitcoin's 4 years cycles. Ah, and Bitcoin white paper: it's short and not too technical, it may give you a better view what was Bitcoin invented/created for.