The main economic data issued on Thursday indicates that the American economy may be on the brink of recession, a difficult mix of slow growth, poor labor market, and high prices.
Despite these concerns, participants in the encryption market remain optimistic, with a focus instead on the expected Federal Reserve Discounts and signs of traditional markets as higher encryption engines.
“The main driver of this market cycle is the cash wind, and this is still sound, despite the danger of stagnation. Bitcoin, and a wider scale, absorbing capital as a hedge against Fiat reduction and long -term financial instability. Coindsk.
The data released on Thursday showed that consumer prices rose 0.4 % over a month in August, which prompted the annual inflation rate to 2.9 %-the highest since January. This was increasing from 2.7 % in July. Meanwhile, requests for the first time to get unemployment have increased last week to the highest level in four years. Early this week, BLS announced a digital review of job workers created during the year ending in March 2025.
Despite the supposed recession data, the S&P 500 index rose to the highest level ever, while the dollar index fell 0.5 % to 97.50, as traders focused on expected Federal Reserve discounts and looked beyond inflation.
Bitcoin (BTC), the leading cryptocurrency depending on the market value, and for a short period of $ 116,000, based on the last upward technical collapse. As of the time of writing this report, BTC was trading at $ 115,244. Altcoins has been published like Solans Sol (Sol), Link (Link), DOGECOIN (DOGE) 24 hours larger gains.
Traders are widespread that the Federal Reserve will reduce prices by 25 basis points to 4 % on September 17, with additional discounts expected during the end of the year. This view is still largely unchanged despite the disappointing economic data on Thursday, indicating continuous confidence in the fact that the Federal Reserve will give priority to support the labor market, and is looking for previous fears of sticky inflation.
Le Shi, Managing Director of the Crypto Auros Market maker, presented an interesting note that the wonderful coins 7-large volume technology arrows known as market dominance and strong growth capabilities-relatively isolated from stagnation fears. The continuous force in the so -called MAG 7 currencies, which planned billions in capital expenditures, expenditures and development (R&D) on artificial intelligence, can grease the feelings of the encryption bull.
Xi added: “When the recession represents a threat waving on the horizon in the current bull race, the MAG 7 and S& P 493 have been greatly separated recently. As a result, it seems that the list of artificial intelligence – the biggest topic in this bull run so far – seems more isolated than the recession because of this.”
Sam Geer, chief investment official in Monarq Asset Management, stated that the risk bonus in the cryptocurrency market is still attractive.
“It seems that traders get” everything clear “in exchange for lowering prices next week after the consumer price index and work data provided any negative shocks or surprises. With these versions behind us-and after printing the most soft PPI from yesterday-we believe that the risks/bonus continue to prefer the upward trend,”
Gaer explained that in a possible stagnation scenario, the Federal Reserve may be forced to give priority to prices for labor and raise rates, which may lead to a temporary aversion to risk or sale in growth assets and sensitive liquidity such as stocks and cryptocurrencies. However, this would enhance the long -term bull issue.
“In the medium to long term, this dynamic will enhance the state of the structural bull of Bitcoin and encryption on a larger scale, as investors seek rare assets and not intended to hedge from continuous money,” said Gear.
Marcus Thynin, the founder of 10x research, said that the trend of inflation is likely to resume in the coming months.
“The inflation model and the leading indicators indicate a low inflation, a background that gives risk assets a field of operation. Cut 25 bits per hour with instructions for more markets that will calm down, not scare them, and pave the way for the upward end throughout the year.”
With Bitcoin and other major cryptocurrencies arriving at the highest new levels ever, a selection of Altcoins is preparing to try large marches. It is worth noting that there is an increasing consensus on Soliana price prospects.
“We have seen a strong demand for Sol in the past two weeks. Solbtc is trading at its highest level in seven months and pushing it for the psychological level of 0.002, with the continued strong bullish momentum from early August. The rotation to Sol occurs naturally with many Dats on the Internet, with one dollar increased (raised) to different compounds),” explained Gaer.
Other preferred among the participants in the industry are the Ena Ena protocol from Ethaina and its artificial dollars, USDE, as well as the excessive noise noise code.
“Younger investors are not interested in 7 % slow annual returns. Instead, they resort to permanent markets and trades with the leverage, which makes the most dangerous bets with greater potential than the upward trend. The excessive liquid of the user type is completely built: it is offered without permission, always, and does not indicate that there is what is said in the molorfits, does not communicate with the deaf, and do not explain in a way It is increasing, and it is not said to be credited, and does not communicate with the spirit, and does not indicate that there is something that is said in the fatwa.
He pointed to the feature of the return that ETHENA has reduced the Federal Reserve, which leads to a decrease in the return on traditional fixed income tools and dollar rewards, such as stablecoins.
Think about it like a common strategy in the markets in foreign currency markets, where the country’s currency tends to enhance when bond returns increase for others, and attract capital flows due to higher returns.
“With the low rates of federal reserve discounts and the low-term T-Bill revenues, traditional stablecoins like Circle becomes less profitable, and the distinctive basis of Ethina becomes more profitable.
Urues referred to CRO with Sol, BNB and Hype as major symbols to monitor during the next rise in the encryption market.
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