How is BTC an inflation hedge?

I am asking, because it seems like every time there is bad inflation, the price plummets just like all of the other assets. In fact, it falls way harder than most assets in the stock market for example.

Now I hold BTC, and have a positive outlook towards its future, but the narrative that it will somehow protect against inflation seems to be incorrect. How can one consider the asset to be preserving value or purchasing power when it drops massively in commonly agreed upon measures of value every time there is fear or inflation?

I’m obviously aware of its massive growth over the long term, but when it comes to short term capital preservation, it has proven to be quite ineffective. Massive dips higher than 70% have been on the table historically. It seems as though one would be better off selling it and acquiring a more stable asset during panic and inflation.