Crypto Experts Stay Bullish on Bitcoin Amid Fed Rate Cut Hopes vs Stagflation Worries

Bitcoin bulls aren't backing down—even as economic crosscurrents intensify.

Fed's Rate Gamble

Speculation mounts that the Federal Reserve might slash rates to counter economic headwinds. That prospect fuels crypto optimism, as lower rates traditionally weaken the dollar and boost alternative assets. Bitcoin's appeal as an inflation hedge gets another look—even if some traders treat that narrative like a convenient excuse for volatility.

Stagflation Shadows

Rising prices meet slowing growth—a combo that spooks traditional markets. Yet crypto pundits see opportunity where Wall Street sees risk. They argue Bitcoin’s finite supply and decentralized nature offer shelter from fiscal uncertainty and monetary experimentation. Because nothing says 'safe haven' like an asset that can swing 10% before lunch.

Market Momentum

Despite macro fears, trader sentiment leans bullish. Open interest climbs, options activity spikes, and institutional flows hint at renewed appetite. Whether that confidence holds depends on how the Fed plays its next hand—and whether Bitcoin can shrug off its habit of correlating with tech stocks when things get messy.

So while economists fret over GDP prints and CPI reports, crypto’s true believers keep stacking sats—betting that digital gold will shine while traditional finance wrestles with the consequences of its own excess.

Standout tokens

As bitcoin and other major cryptocurrencies reach new all-time highs, a select group of altcoins is poised to experience significant rallies. Notably, there is a growing consensus about solana's (SOL) price 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 explained.

The other favorites among industry participants are the DeFi protocol Ethena's ENA token and its synthetic dollar, USDe, as well as decentralised exchange 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 said explaining the bullish case for Hyperliquid's HYPE token.

He pointed out the yield advantage Ethena has as the Fed cuts rates, driving down the return on traditional fixed-income instruments and dollar equivalents, such as stablecoins.

Think of it like the popular yield-differential strategy in foreign exchange markets, where a country’s currency tends to strengthen when its bond yields rise relative to others, attracting capital flows due to higher 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 noted.

Auros pointed to CRO along with SOL, BNB and HYPE as key tokens to watch out for during the next upswing in the crypto market.