Bitcoin's inflation hedge faces hidden costs as leverage amplifies borrowing expenses

September's US inflation report showed consumer prices up 3.7% year-over-year, fueling dollar-purchasing power concerns. High inflation keeps interest rates elevated, making Bitcoin borrowing expensive. A $10,000 cash purchase breaks even if Bitcoin's price stays flat, but a leveraged investor borrowing an additional $10,000 at 8% annual interest would lose 8% of their own capital if Bitcoin ends the year unchanged. Leverage requires Bitcoin to rise 4% just to cover interest costs, significantly raising the barrier to profitability.