Try a longer term perspective, and BTC is indeed still deflationary - its potential to replace central bank functionality and to be a secure, global SoV is still valuable to investors.
Bitcoin was supposed to have started acting counter-cyclically (like gold) when it got mass adoption. So, 2018?
Instead, it acts like leveraged NASDAQ in its pricing, and has absolutely none of the utility that a cryptocurrency probably should have. The only benefit of bitcoin is name recognition. That doesn't create a currency or a store of value. The volatility of BTC/USD has only increased, as well as the correlation with QQQ, which does not suggest that BTC will ever become a store of value.
All fundamental signs point to a $0 value for bitcoin. Unfortunately, the dinosaur coin (BTC) will probably drag down the coins with utility (eg Solana, Zcash, and Monero) with it.
Please take this kind of argument elsewhere.
> The volatility of BTC/USD has only increased
Do you have a source for this? The data I have seen is that it is just slightly decreasing if anything, but there are many ways to measure volatility.
Instead, when asset prices crashed and most countries experienced their highest inflation in decades, BTC not only failed to gain in value as a "safe haven" but actually fell much faster. Impossible to stress how favourable this year should have been to an "uncensorable" abstract store of value whose supply doesnt vary according to economic conditions.