Stagflation enters Wall Street lingo again, Bitcoin under pressure

A panic attack has seemingly crept into Wall Street. The word stagflation, aka the combination of higher prices combined with a deteriorating labor market, is increasingly seen in business newspaper titles again, causing investors to seek safety. Although Bitcoin is still trading at a very high price, it seems quite difficult that it will find new stimulus in these circumstances.

Stagflation

There are a few panic words for investors and stagflation is certainly one of them. This term describes an economic situation in which a country simultaneously experiences high inflation (which has been the case in the United States for months), slowing economic growth (which is happening due to the uncertainty surrounding Trump’s tariffs), and high unemployment (which appears to be happening based on the latest economic figures). All of this is causing investors to retreat to safe havens and making it difficult for larger institutional funds to explain their intention to invest in crypto.

Meanwhile, Bitcoin remains in the crucial zone between $113,000 and $116,000 (a value it must maintain to avoid falling further below its 200-day moving average). The largest digital currency is, of course, being helped by the dollar’s renewed decline against the world’s other major fiat currencies.

Trump’s sudden imposition of a 50% tariff on India immediately weakened the dollar, as analysts feared a decline in trade between the two superpowers.