This is wrong, assuming values of BTC hadn’t also changed overnight. It could only be true if BTC simultaneously dropped in value 33%, but that would be unrelated to USD inflation.
And even abstract financial instruments like mortgages, REITs, bonds, CDSs, CDs, shares of commodities, etc. are based on these fundamental things. Bonds are based on currencies--which are only worth anything if they're the primary denomination of goods/services with intrinsic worth. REITs, mortgages, etc. represent shelter. Commodities represent food, water, and medicine.
BTC represents... nothing? Energy loss? Honestly there's no analog. Snake oil is still oil, selling someone air--they still get air. And sure, you can still argue "well camgunz, even if it's literally nothing, if people want it, they'll put a price on it". But... isn't that really just super bad, like collapse of the civilization bad if it ever gets to scale? We really shouldn't be convincing people to turn their money into absolutely nothing. That seems very obviously not a good idea.
Or, to put it a different way, BTC isn't any less bankrupt because we sometimes grow too much corn. It's a complete non sequitur.
Ahh, but BTC doesn't belong in that list at all. The Euro and Sterling are backed by large, stable economies, used by each to value their exports. Milk is a commodity, which has intrinsic value (not to mention cost to produce, market, transport, regulate, and sell). BTC is an asset, but not anything like REIT or bonds, because it doesn't represent anything of actual worth. Or, skipping some steps, its only worth is that you can convince someone it will eventually have any value at all.
Cryptocurrencies are unique among all other assets in that, at the bottom of them, they are figuratively bankrupt and actually meaningless. There are no goods valued solely in BTC (even black market stuff is like "$100 / .0092 BTC") and no strong, stable economy backing it. At the end of the day, BTC basically says "someone will give you a lot of currency you actually care about for these zeroes and ones", and because those zeroes and ones have no additional value (i.e. it's not a cure for cancer or a TLS skeleton key), the proposition is literally worthless.
So yes. Normally that is what inflation means, but only for currencies that can actually purchase goods and services people want, or goods people actually want to consume, or services people actually want to use. Cryptocurrencies are none of those things.