The key economic data published on Thursday indicates that the US economy may be on the verge of stagflation, a challenging combination of slow growth, a weakening labor market and the increase in prices.
Despite these concerns, cryptocurrency market participants remain optimistic, focusing on the cuts and tariff signals of the Federal Federal Reserve of traditional markets as promoters for higher cryptographic valuations.
“The underlying driver of this market cycle is a monetary tail wind, and that remains intact, despite the risk of prosecution. Bitcoin and cryptography in a broader way, they are absorbing capital as a coverage against fiduciary dilution and long -term fiscal instability. They do not work only as a risk, as we have seen in past cycles”, founder of the Platform of the Cría of the breeding, an advisor to the breeding, an advisor to the breeding.
The data published on Thursday showed that consumer prices increased 0.4% month by month in August, which carried the inflation rate annualized to 2.9%, the highest since January. That was 2.7% in July. Meanwhile, applications for the first time for unemployment benefits increased last week to its highest level in four years. Earlier this week, the BLS announced a record review of the work created during the year ended in March 2025.
Despite the alleged staplation data, the S&P 500 increased to the new historical maximums, while the dollar index fell 0.5% to 97.50, since the merchants focused on the early cuts of the feeding rates and looked beyond inflation concerns.
Bitcoin The leading cryptocurrency by market value briefly exceeded $ 116,000, based on its recent bullish technical break. At the time of writing, BTC was quoted at $ 115,244. Altcoins as the Sun of Solans (SUN)LINK (LINK)Dogecoin Published larger profits for 24 hours.
Operators expect that the FED reduces rates at 25 basic points at 4% on September 17, with additional reductions planned until the end of the year. This perspective remains unchanged despite Thursday’s disappointing economic data, indicating the continuous confidence that the Fed will prioritize support the labor market, looking at the past concerns of sticky inflation.
Le Shi, managing director of the Crypto Market Auros market manufacturer, made an interesting observation that the magnificent 7 currencies, the great capitalization technology actions known for their market domain and a strong growth potential, seem relatively isolated from the fears of stagning. The continuous strength in the so -called MAG 7 coins, which have planned billions in capital and research and development expenses (R&D) The expenses in AI could grease the feeling of cryptography.
“Being an imminent threat to the current race, Mag 7 and the S&P 493 have been significantly decoupled in recent times. As a result, the narrative of AI, possibly the biggest theme of this Toro race until now, seems more isolated from the fears of thisffation due to this,” Shi added.
Sam Gaer, Investment Director of the MONARQ ASSET Management Fund, declared that the risk reward relationship in the cryptocurrency market remains attractive.
“The merchants seem to be obtaining a” all clear “for a rate cut next week after the data of the CPI and the work did not deliver clashes or negative surprises. With these releases behind us, and after the softer PPI print of yesterday, we believe that the risk/reward continues to favor the advantage.”
Gaer explained that in a possible staplation scenario, the Fed can be forced to prioritize the stability of employment prices and increase rates, which could lead to a temporary aversion to risk or the sale of assets sensitive to growth and liquidity, such as actions and cryptocurrencies. However, this would only strengthen the case of Crypto Bull in the long term.
“However, in the medium and long term, this dynamic would strengthen the case of structural bulls for bitcoin and cryptography more broadly, since investors seek scarce and non -sovereign active to cover persistent fiduciary degradation,” Gaer said, adding that the probability of a prolonged stagnation regime is low.
Markus Thielen, founder of 10x Research, said it is likely that the disinflation trend resumes in the coming months.
“Our inflation model and the main indicators point to the fall in inflation, a backdrop that gives risk assets.
Prominent tokens
As Bitcoin and other important cryptocurrencies reach new historical maximums, a select Altcoins group is ready to experience significant manifestations. In particular, there is a growing consensus on Solana (SUN) Price perspectives.
“We have seen a strong demand for sun during the last 2 weeks. Solbtc is quoted at its highest level in seven months and is pressing against the psychological level of 0.002, with a strong ascending impulse that continues since the beginning of August. (or be raised) In several Sol vehicles, “Gaer explained.
The other favorites among industry participants are the token ENA of the Defi Ethena protocol and its synthetic dollar, USDE, as well as the Hyperliquid hyperliquid token of Decentralized Exchange.
“Younger investors are in interest in slow 7% Annualized Returns. Instag Always-on, and Increasingly posted as the go-to for high-beet plays, specially Among Younger Investors Who View Volatity As a feature, not a bug, “Molidor Said Explaning The Bullish Case for the Token of Hyperliquid hype.
He pointed out the performance advantage that Ethena has as Fed reduction rates, reducing the performance of traditional fixed income instruments and the equivalents in dollars, such as stablecoins.
Think about it as the popular performance strategy in currency markets, where the currency of a country tends to strengthen when its bond yields increase in relation to others, attracting capital flows due to the greatest yields.
“As the Fed reduces the rates and yields of the short -term T invoice, the traditional stables such as Circle become less profitable and the commerce of Ethena tokenized bases becomes more lucrative. It is a rare circumstance where ethhena establishment yields increase as feeding rates are reduced, which could make the token particularly attractive in the next phase of the cycle of the market, “he said.
Auros pointed Cro along with Sol, BNB and Hype as key tokens to take into account during the next rise in the cryptography market.
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