The Producer Price Index (PPI) is a measure of inflation that captures the prices companies receive for the goods and services they sell, before those products reach consumers; eventually, those higher costs are usually passed on to consumers in large part. Per the BLS, it jumped 1.3% in September 2026, and 6.3% over the prior 12 months. Core consumer inflation was 2.6% for the 12 months through September 2026; the Fed targets 2% on a similar gauge. <\/p>\n Moreover, rising energy costs probably won’t ease as long as the war with Iran is ongoing. And the cost of energy is reflected in the price of almost everything else. <\/p>\n Bitcoin is not necessarily well suited<\/a> for benefiting from any of these types of inflation. <\/p>\n If people’s wallets are squeezed, the odds are that many of them will invest less, especially in riskier assets like Bitcoin. <\/p>\n Can Bitcoin hedge this inflation? <\/p>\n Nonetheless, Bitcoin could still benefit from inflation stemming from a different source. <\/p>\n J.P. Morgan Asset Management’s 2027 outlook portrays Bitcoin as a bet that governments will continue to create more money, diluting the value of the existing money in circulation. Its report says that the coin typically behaves as a risky asset that tracks the global money supply. For now, the Fed is moving in the opposite direction, with markets expecting it to raise rates again before the end of the year. <\/p>\n On that note, new money creation is underway and is likely to continue, and probably even accelerate from here. <\/p>\n The M2 money supply (cash plus bank deposits) grew by 5.7% in the year through August 2026, per Federal Reserve data. If slowing economic growth in the U.S. eventually forces the Federal Reserve to make interest rate cuts while prices are still climbing, thereby making borrowing cheaper and money supply growth likelier to speed up, Bitcoin’s fixed supply could serve as a refuge for those who want to hedge against inflation<\/a>. <\/p>\n So, over the next few quarters, watch whether producer prices keep climbing if the Fed starts cutting rates, as that mix of conditions will be a test for Bitcoin’s inflation-hedge thesis. If the coin gains in value, it’s likely to protect against inflation at least somewhat. <\/p>\n Should you buy stock in Bitcoin right now? <\/p>\n Before you buy stock in Bitcoin, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $355,124!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,296,254!* <\/p>\n Now, it’s worth noting Stock Advisor’s total average return is 901% \u2014 a market-crushing outperformance compared to 210% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of October 24, 2026. <\/p>\n Alex Carchidi<\/a> has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. A digital asset can’t do much about rising input costs <\/p>\n