Crypto Pundits Bullish on Bitcoin (BTC), Ethena (ENA), Solana (SOL), HYPE, BNB

Key financial knowledge launched Thursday point out that the U.S. economic system could also be on the brink of stagflation, a difficult mixture of sluggish progress, a weakening labor market, and rising costs.

Despite these issues, crypto market members stay optimistic, focusing as a substitute on anticipated Federal Reserve fee cuts and indicators from conventional markets as drivers for greater crypto valuations.

“The underlying driver of this market cycle is a monetary tailwind, and that remains intact, despite the risk of stagflation. Bitcoin, and crypto more broadly, are absorbing capital as a hedge against fiat dilution and long-term fiscal instability. They aren’t functioning solely as a bet on risk, like we’ve seen in past cycles,” Shane Molidor, founding father of Forgd, a crypto advisory platform, instructed CoinDesk.

Data launched Thursday confirmed that client costs rose 0.4% month-on-month in August, driving the annualized inflation fee to 2.9% — the best since January. That was up from 2.7% in July. Meanwhile, first-time purposes for unemployment advantages surged final week to their highest degree in 4 years. Early this week, the BLS introduced a document downward revision to jobs created throughout the 12 months ended March 2025.

Despite the supposed stagflationary knowledge, the S&P 500 surged to new all-time highs, whereas the greenback index fell by 0.5% to 97.50, as merchants centered on anticipated Fed fee cuts and regarded past inflation worries.

Bitcoin BTC$115,349.09, the main cryptocurrency by market worth, briefly topped $116,000, constructing on its current bullish technical breakout. As of the time of writing, BTC was buying and selling at $115,244. Altcoins corresponding to Solans’s SOL (SOL), LINK (LINK), Dogecoin DOGE$0.2611 posted larger positive factors on a 24-hour foundation.

Traders extensively anticipate the Fed to chop charges by 25 foundation factors to 4% on Sept. 17, with further reductions anticipated via the tip of the 12 months. This outlook stays largely unchanged regardless of Thursday’s disappointing financial knowledge, signaling continued confidence that the Fed will prioritize supporting the labor market, wanting previous issues of sticky inflation.

Le Shi, managing director of crypto market maker Auros, made an attention-grabbing commentary that the Magnificent 7 cash – large-cap expertise shares recognized for his or her market dominance and robust progress potential – seem comparatively insulated from stagflation fears. The continued power within the so-called Mag 7 cash, which have deliberate billions in capital expenditures and analysis and improvement (R&D) expenditures on AI, may grease the crypto bull sentiment.

“On stagflation being a looming threat to the current bull run, the Mag 7 and the S&P 493 have significantly decoupled of late. As a result, the AI narrative – arguably the largest theme in this bull run so far – appears more insulated from stagflation fears because of this,” Shi added.

Sam Gaer, chief funding officer of Monarq Asset Management’s Directional Fund, acknowledged that the risk-reward ratio within the cryptocurrency market stays engaging.

“Traders appear to be getting an ‘all clear’ for a rate cut next week after CPI and labor data delivered no shocks or negative surprises. With these releases behind us — and after yesterday’s softer-than-expected PPI print — we believe risk/reward continues to favor the upside,”

Gaer defined that in a possible stagflationary state of affairs, the Fed could also be pressured to prioritize worth stability over employment and lift charges, which may result in a short lived danger aversion or sell-off in progress and liquidity-sensitive belongings corresponding to shares and cryptocurrencies. However, this may solely strengthen the long-term crypto bull case.

“Over the medium to long term, however, this dynamic would strengthen the structural bull case for Bitcoin and crypto more broadly, as investors seek scarce, non-sovereign assets to hedge persistent fiat debasement,” Gaer stated, including that the likelihood of a chronic stagflationary regime is low.

Markus Thielen, founding father of 10x Research, stated the disinflation development is more likely to resume within the coming months.

“Our inflation model and leading indicators point to falling inflation, a backdrop that gives risk assets room to run. A 25bp cut with guidance for more would calm markets, not spook them, and set the stage for a bullish finish to the year,” Thielen instructed CoinDesk.

Standout tokens

As bitcoin and different main cryptocurrencies attain new all-time highs, a choose group of altcoins is poised to expertise important rallies. Notably, there’s a rising consensus about solana’s (SOL) worth prospects.

“We have seen strong demand for SOL during the past 2 weeks. SOLBTC is trading at its highest level in seven months and pushing up against the psychological 0.002 level, with strong upward momentum continuing from early August. Rotation into SOL is naturally occurring as several SOL DATs are coming online, with over $1B raised (or being raised) into various SOL vehicles,” Gaer defined.

The different favorites amongst business members are the DeFi protocol Ethena’s ENA token and its artificial greenback, USDe, in addition to decentralised trade Hyperliquid’s HYPE token.

“Younger investors aren’t interested in slow 7% annualized returns. Instead they’re turning to perpetuals markets and trading with leverage, making riskier bets with greater upside potential. Hyperliquid is built for exactly that type of user: it’s permissionless, always-on, and increasingly positioned as the go-to for high-beta plays, especially among younger investors who view volatility as a feature, not a bug,” Molidor stated explaining the bullish case for Hyperliquid’s HYPE token.

He identified the yield benefit Ethena has because the Fed cuts charges, driving down the return on conventional fixed-income devices and greenback equivalents, corresponding to stablecoins.

Think of it like the favored yield-differential technique in international trade markets, the place a rustic’s forex tends to strengthen when its bond yields rise relative to others, attracting capital flows resulting from greater returns.

“As the Fed cuts rates and short-term T-Bill yields fall, traditional stablecoins like Circle’s become less profitable and Ethena’s tokenized basis trade becomes more lucrative. It’s a rare circumstance where Ethena’s stablecoin yields go up as Fed rates come down, which could make the token particularly attractive in the next phase of the market cycle,” he famous.

Auros pointed to CRO together with SOL, BNB and HYPE as key tokens to be careful for throughout the subsequent upswing within the crypto market.

Read extra: Rising Jobless Claims Eclipse Inflation Data as Recession Fears Resurface