• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
stagflation

Stagflation Vs. Crypto: Can Bitcoin And Ether Weather The Storm?

Christian Encila
by Christian Encila
1 year ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The cryptocurrency market is experiencing a period of volatility as investors grapple with conflicting forces. Renewed anxieties about stagflation in the US – a scenario of high inflation coupled with sluggish economic growth – are putting downward pressure on prices.

However, potential countervailing factors, including a liquidity injection from the US government and the launch of Hong Kong’s Bitcoin ETFs, are offering a glimmer of hope.

Related Reading: Akita Goes Digital: Japanese Society Uses Blockchain To Guard Dog Breeds

Crypto Prices Tumble On Stagflation Jitters

Bitcoin, the leading cryptocurrency, is currently trading around $62,559, representing a 1.5% decline in the past 24 hours. Ethereum (ETH) and other major digital assets are mirroring this trend, with ETH experiencing a 3.30% drop to $3,187. This price slump reflects growing concerns about a potential stagflationary environment in the US.

Source: CoinMarketCap

Stagflation is historically considered a “nightmare scenario” for investors, as it presents a difficult choice. High inflation erodes the value of cash holdings, while a stagnant economy discourages risk-taking behavior. Cryptocurrencies, often viewed as a risky asset class, tend to suffer in such situations.

US Economic Data Fuels Uncertainty

Recent economic data from the US is fueling these anxieties. The first-quarter GDP report revealed a significantly slower growth rate compared to the previous quarter, falling from 3.4% to a mere 1.6% annualized rate.

Meanwhile, the Personal Consumption Expenditures (PCE) price index, a key inflation metric for the Federal Reserve, painted a worrying picture. Prices rose to a 3.4% annualized rate in the first three months of 2024, a significant jump from the 1.8% witnessed in the final quarter of 2023.

Total crypto market cap currently at $2.2 trillion. Chart: TradingView

This combination of sluggish economic growth and persistent inflation raises concerns that the Fed might be less inclined to cut interest rates as previously anticipated. Lower interest rates are generally seen as positive for risk assets like cryptocurrencies, as they incentivize borrowing and investment. With rate cuts seemingly off the table, investors are adopting a cautious stance.

Stagflation: Potential Lifelines On The Horizon

Despite the prevailing negativity, there are some potential bright spots on the horizon for the crypto market. The US government’s fiscal strategy, which leverages the Treasury General Account (TGA) and the Reverse Repurchase Program (RRP), could inject over $1 trillion in liquidity into the financial system. This significant influx of cash could potentially bolster risk assets, including cryptocurrencies.

Related Reading: Crypto Crackdown In South Korea: New Unit To Hunt Down Criminals

Furthermore, the much-anticipated launch of Bitcoin exchange-traded funds (ETFs) in Hong Kong on April 30th is generating cautious optimism. These ETFs could attract new investors to the crypto market, particularly from Asia. However, restrictions on mainland Chinese investors participating in the trade could dampen the overall impact.

The Crypto Market: A Balancing Act

The near future of the crypto market hinges on the interplay of these opposing forces. The threat of stagflation and the possibility of a more hawkish Federal Reserve pose significant challenges. However, potential government intervention and the launch of Hong Kong’s Bitcoin ETFs could offer some much-needed support.

In the coming weeks, investors will be closely monitoring economic data and government actions to gauge the direction of the US economy and its potential impact on the crypto market.

Featured image from Pexels, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christian Encila

Christian Encila

Follow

Christian, a journalist and editor with leadership roles in Philippine and Canadian media, is fueled by his love for writing and cryptocurrency. Off-screen, he's a cook and cinephile who's constantly intrigued by the size of the universe.

Full Profile

Related Posts

Best Altcoins to Buy After Vanguard’s Big Crypto ETF Shift

Best Altcoins to Buy After Vanguard’s Big Crypto ETF Shift

1 hour ago
Kraken

Kraken Secures $500 Million In Latest Funding Round, Boosting Valuation To $15B

3 hours ago
Best Crypto Presales to Buy as SWIFT Tests Blockchain Payments with Ethereum Linea

Best Crypto Presales to Buy as SWIFT Tests Blockchain Payments with Ethereum Linea

3 hours ago
Vanguard

$10 Trillion Asset Manager Vanguard Prepares To Offer Access To Crypto ETFs For The First Time

4 hours ago
crypto

Celebrity Downfall: South Korean Actress Sentenced For $3-M Crypto Scam

6 hours ago
crypto, Coinbase, SEC, PayPal

SEC, FINRA Probe Firms For Unusual Trading Activity Ahead Of Crypto Treasury Announcements – Report

7 hours ago

Premium Sponsors

Press Releases

  • 上線倒計時:僅剩25天可搶購 Snorter Bot 代幣

    1 day ago
  • 加密錢包掀起發幣熱潮 Best Wallet...

    3 days ago
  • Bitcoin Hyper

    ChatGPT предсказва следващата 1000x...

    4 days ago
  • Snorter надхвърли $4 милиона след...

    5 days ago
  • Experience the Next Chapter of Pickleball with the $PKL Token Presale.

    Experience the Next Chapter of Pickleball with the $PKL...

    1 week ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.