Crypto Experts Maintain Bullish Stance on Bitcoin Despite Stagflation Uncertainties and Rate-Cut Hopes

Crypto Experts Remain Bullish on Bitcoin Despite Stagflation Risks

Despite economic indicators pointing to potential stagflation in the U.S., crypto analysts maintain a positive outlook on Bitcoin, emphasizing anticipated Federal Reserve rate cuts and the structural bull market in digital assets.

Data released Thursday showed consumer prices rising 0.4% month-on-month in August, pushing the annual inflation rate to 2.9%, the highest since January. First-time unemployment claims climbed to a four-year high, and the Bureau of Labor Statistics revised downward its jobs data for the year ended March 2025.

Yet markets largely shrugged off these signals. The S&P 500 hit record highs, while the dollar index dropped 0.5% to 97.50, as investors focused on Fed rate-cut expectations rather than inflation concerns.

Bitcoin and Altcoin Performance
Bitcoin (BTC) briefly topped $116,000, extending gains from a recent technical breakout, and was trading near $115,244 at the time of writing. Altcoins such as Solana (SOL), Chainlink (LINK), and Dogecoin (DOGE) posted stronger 24-hour gains.

Shane Molidor, founder of crypto advisory platform Forgd, said, “Bitcoin and crypto more broadly are absorbing capital as a hedge against fiat dilution and long-term fiscal instability, rather than as a pure risk-on play like in prior cycles.”

Fed Rate-Cut Expectations Bolster Optimism
Traders widely expect a 25 basis-point Fed rate cut to 4% on September 17, with further reductions likely by year-end. Analysts anticipate the Fed will prioritize labor market support over short-term inflation, reinforcing positive sentiment in crypto markets.

Le Shi, managing director at crypto market maker Auros, highlighted that the so-called Magnificent 7 tech stocks, heavily investing in AI and R&D, appear insulated from stagflation fears—a factor supporting crypto bullishness.

Sam Gaer, CIO at Monarq Asset Management, noted that any temporary market pullback due to stagflation could strengthen Bitcoin’s long-term narrative as a scarce, non-sovereign asset. Markus Thielen, founder of 10x Research, added that disinflation trends are expected to resume, creating favorable conditions for risk assets into year-end.

Altcoins and High-Beta Tokens
Solana (SOL) has gained momentum, with SOL/BTC trading at a seven-month high and approaching key resistance levels. Over $1 billion has been raised through various SOL vehicles, driving rotation into the token.

Other altcoins attracting attention include Ethena’s ENA and its synthetic dollar USDe, alongside Hyperliquid’s HYPE token. Molidor explained that younger investors are increasingly pursuing high-beta, leveraged trades, making platforms like Hyperliquid appealing for volatility-driven strategies.

Falling Fed rates also enhance the appeal of crypto-based yield products such as Ethena, creating a scenario where these tokens offer better returns than traditional fixed-income assets.

Tokens to Watch
Auros highlighted CRO, SOL, BNB, and HYPE as key tokens poised for gains in the next market upswing, fueled by liquidity inflows, macro tailwinds, and rotation into high-demand altcoins.