Bitcoin Adjusted For Commodity & M2SL

Chart shows historical price of Bitcoin adjusted against both the Global Commodity Price Index and M2SL, and may serve as a visual aid to illustrate Bitcoin price adjusted for rise in commodity prices while taking into account increase in money supply.

This chart therefore accentuates and magnifies the recent downturn by taking into account both rising commodity prices due partially to increase in Money Supply and money supply increase itself. One could make the case that this chart distorts the price of Bitcoin. One could also make the case that the chart illustrates Bitcoin's shortcomings as an inflation hedge.

Regression analysis shows retrace from cycle ATH to ATL becoming more severe with each downturn. By this measure, we might try to look for 88% retrace on this chart.

Comment:

Bitcoin was initially designed to serve as a currency for tangible things, such as commodities, and therefore as a store of value against monetary/fiat inflation thereof. This chart stimulates a question: Is Bitcoin undervalued vis a vis tangible commodities, because if it's own designation as a commodity?

Were Bitcoin not designated as a taxable commodity and permitted to function as it was originally designed to - as an alternative currency - would we be seeing a different chart here, a stronger chart, where in fact it rose with commodity prices, rather than getting hit twice by commodity price rise and money supply rise?