Bitcoin has seen a significant decline of 36% over the past year, dropping below $70,000 this week, which challenges its reputation as a reliable inflation hedge. As geopolitical tensions and inflation fears resurface, Bitcoin has not capitalized on these factors, instead suffering an inflation-adjusted loss of about 39%. This downturn has been compounded by rising energy costs and a recent warning from Cleveland Fed President Beth Hammack regarding inflation risks. Notably, Bitcoin has failed to keep pace with a broader rally in risk assets, losing 14% while stocks surged to record highs. The cryptocurrency's struggles have drawn criticism from investors like Mark Cuban, who expressed disappointment in its performance as a store of value. Furthermore, the crypto market has faced significant liquidations, totaling $1.2 billion, with Bitcoin leading the way. Critics argue that Bitcoin's limited supply is undermined by the proliferation of derivative contracts and ETFs, raising questions about its viability as a hedge against inflation.