Crypto Analysts Stay Optimistic on Bitcoin Amid Rate-Cut Expectations and Stagflation Risks

Crypto Experts Stay Bullish on Bitcoin Amid Fed Rate-Cut Optimism and Stagflation Worries

Despite economic data signaling potential stagflation in the U.S., crypto analysts remain optimistic on Bitcoin, focusing on anticipated Federal Reserve rate cuts and a long-term structural bull market.

Recent reports showed consumer prices rose 0.4% month-on-month in August, lifting the annualized inflation rate to 2.9%—the highest since January. First-time unemployment claims hit a four-year high, and jobs data for the year ended March 2025 was revised downward.

Still, broader markets have largely shrugged off these concerns. The S&P 500 reached record highs, and the dollar index fell 0.5% to 97.50 as investors focused on the potential for Fed rate cuts rather than inflationary pressures.

Bitcoin and Altcoin Performance
Bitcoin (BTC) briefly surpassed $116,000, consolidating gains from a recent bullish breakout, while altcoins such as Solana (SOL), Chainlink (LINK), and Dogecoin (DOGE) posted notable 24-hour gains.

Shane Molidor, founder of crypto advisory platform Forgd, emphasized the enduring monetary tailwinds: “Bitcoin and crypto more broadly are absorbing capital as a hedge against fiat dilution and long-term fiscal instability, not merely as a risk-on play like in previous cycles.”

Fed Rate-Cut Expectations Support Bullish Sentiment
Traders widely anticipate a 25 basis-point Fed rate cut to 4% on September 17, with additional reductions likely before year-end. Analysts expect the Fed to prioritize labor market support over short-term inflation concerns, reinforcing optimism for crypto markets.

Le Shi, managing director at crypto market maker Auros, noted that the so-called Magnificent 7 tech stocks, heavily investing in AI and R&D, remain resilient to stagflation fears—a factor contributing to positive crypto sentiment.

Sam Gaer, chief investment officer at Monarq Asset Management, added that even in a potential stagflation scenario, temporary pullbacks could strengthen Bitcoin’s structural bull case, as investors continue seeking scarce, non-sovereign assets. Markus Thielen, founder of 10x Research, echoed the sentiment, highlighting that disinflation trends are likely to resume, supporting risk assets.

Altcoins and High-Beta Tokens in Focus
Solana (SOL) has gained momentum, with SOL/BTC reaching a seven-month high and testing key resistance levels. Over $1 billion has been raised into various SOL vehicles, supporting continued rotation into the token.

Other altcoins attracting attention include Ethena’s ENA and its synthetic dollar USDe, along with Hyperliquid’s HYPE token. Molidor explained that younger investors increasingly favor high-beta trading and leveraged perpetuals, making platforms like Hyperliquid appealing.

Ethena’s stablecoin yields are also benefiting from falling Fed rates, creating an unusual scenario where crypto-based yield products become more attractive than traditional fixed-income instruments.

Tokens to Watch
Auros highlighted CRO, SOL, BNB, and HYPE as key tokens positioned for upside during the next market upswing, driven by liquidity inflows, macro tailwinds, and rotation into high-demand altcoins.

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