in theory bitcoin is designed to be anti inflationary because of its limited supply but in reality markets don’t always behave by theory.. when inflation data comes in hotter than expected.. it usually means the fed could keep interest rates higher for longer... higher rates make traditional assets like bonds and usd more attractive.. so big investors tend to pull money out of riskier assets like crypto... it’s less about bitcoins long term design & more about short term liquidity and investor psychology.. i would say people still see crypto as a high risk investment.. so it often reacts negatively in the short run to inflation shocks even though the narrative of bitcoin as an inflation hedge could still play out in the long term