{"id":25684,"date":"2025-05-07T22:02:29","date_gmt":"2025-05-07T22:02:29","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=25684"},"modified":"2025-05-07T22:02:29","modified_gmt":"2025-05-07T22:02:29","slug":"fed-stagflation-risk-signal-could-be-bullish-for-bitcoin-analyst-says","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=25684","title":{"rendered":"Fed Stagflation Risk Signal Could Be Bullish for Bitcoin, Analyst Says"},"content":{"rendered":"<div>\n<p>The Federal Reserve is growing increasingly alert to stagflation risks\u2014an uneasy mix of slowing growth and rising inflation that could challenge policymakers.<\/p>\n<p>While Chair Jerome Powell insisted that the economy is in &#8220;good shape&#8221; and emphasized that the central bank is in \u201ca good position to wait and see,\u201d prior to shifting policy, subtle changes in the central bank&#8217;s policy statement pointed to heightened concerns over the economy\u2019s direction.<\/p>\n<p>Holding its benchmark interest rate steady today, the U.S. central bank acknowledged the growing risk of rising inflation and unemployment \u2014 roughly the definition of stagflation, which last made an appearance throughout a sizable chunk of the 1970s. That scenario would leave the central bank with limited room to maneuver to stimulate a weakening economy without further fueling inflation.<\/p>\n<p>\u201cThe Fed is worried about stagflation,\u201d Zach Pandl, head of research at Grayscale, <a href=\"https:\/\/x.com\/LowBeta_\/status\/1920178416365564012\">posted on X<\/a> after the decision. \u201cWe think that outcome would be good for bitcoin.\u201d<\/p>\n<p>In an earlier report, Pandl argued that rising tariffs contribute to stagflation, which historically hurts traditional assets but benefits scarce stores of value like gold. \u201cBitcoin was not around for past stagflations,\u201d he wrote, \u201cbut can be considered a scarce digital commodity and is increasingly viewed as a modern store of value.\u201d<\/p>\n<p>Bitcoin traded in a tight range following the Fed\u2019s announcement and Powell\u2019s remarks. It briefly touched $97,500 earlier Wednesday on optimism around U.S.-China trade talks before settling back to $96,500 \u2014 up 1.6% over the past 24 hours.<\/p>\n<p>The CoinDesk 20 Index (CD20), a broader gauge of the crypto market, was up just 0.3% over the same period, weighed down by 1%-3% declines in XRP, AVAX, UNI, NEAR, and AAVE. <\/p>\n<p>Meanwhile, equities recovered modestly from earlier losses, with the S&amp;P 500 and Nasdaq closing 0.4% and 0.3% higher, respectively.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve is growing increasingly alert to stagflation risks\u2014an uneasy mix of slowing growth and rising inflation that could challenge policymakers. While Chair Jerome Powell insisted that the economy is in &#8220;good shape&#8221; and emphasized that the central bank is in \u201ca good position to wait and see,\u201d prior to shifting policy, subtle changes [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-25684","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/25684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25684"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/25684\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}