Once they give up fighting inflation, the investors may surely be looking for assets to hedge the value of their assets like BTC. However, if the FED still raises interest which is very likely what Pal wants, we're gonna see stocks diving again and perhaps BTC too.
From here we're on different paths.
The FED will never give up on inflation and inflation can't continue like this, not with these causes which are mainly energy costs and slow rebuilding of logistic and manufacturing chains.
It's not a complete meltdown like Zimbabwe or Venezuela and this will either start to be contained as more and more industries resume complete operations and energy prices are going down alongside demand destruction. If there is no demand there won't be inflation either, that's why contrary to some alarmists we don't have the barrel of oil at $300 and OPEC is cutting production after production capacity to keep it above $80.
And then continue where we left off that people will all be going to tighten belts, maybe eat just twice a day and find 3 jobs to make ends meet.
This is just impossible.
Inflation happened because there was a lot of money and there was no production, if you think instead of having one job people will have 3 then you will have a ton of manufacturing and services, as these jobs have to produce something, which will mean more offer and with people tightening their pouch you will have exactly the opposite, deflation, what you picture here is exactly what's been happening in Japan for a decade, there won't be any trace of inflation in this scenario.