Bitfinex Alpha | Bitcoin Rebounds as Stagflation Pressures Mount

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wp-block-button:last-child . wp-block-button__link background-color: #1ABC91; border-color: #1abc9c; color: #fff; Bitcoin closed the week 4.2 percent higher, breaking a three-week decline and reclaiming the critical $112,500 support level after defending the $107,500 range ￰1￱ rebound from the lower end of the gap marks an important structural recovery, setting the stage for stability into late September and potentially stronger upside momentum in Q4. On-chain data supports this backdrop : the cost-basis distribution heatmap highlights clear dip-buying around $108,000, while supply clusters between $110,000 and $116,000 now define the short-term range.

A decisive move above $116,000 would confirm renewed momentum; until then, consolidation remains the base ￰2￱ behaviour reveals that 3–6 month holders realised $189 million in daily profits on average, accounting for nearly 80 percent of all short-term holder selling during the ￰3￱ profit-taking has acted as a near-term headwind, yet overall market structure remains ￰4￱ crypto market capitalisation rose 4.8 percent this week to $3.97 trillion, reflecting a cautious but persistent accumulation ￰5￱ volatility persists, both BTC and the broader market appear to be stabilising, with conditions aligning for a recovery phase once resistance levels are ￰6￱ economic conditions are increasingly defined by a delicate balance between stubborn inflation, weakening labour markets, and resilient—yet fragile—consumer behaviour.

August’s Consumer Price Index showed the sharpest increase since January, with broad-based gains in housing, food, and energy costs, much of it driven by tariffs and supply ￰7￱ the same time, the labour market has softened considerably , with jobless claims climbing to their highest level since 2021 and payroll revisions revealing that employment growth was overstated by nearly a million ￰8￱ to the household level, the same tensions are playing out in sentiment and ￰9￱ confidence fell to its lowest reading since May, reflecting concerns about inflation and job security, while inflation expectations remain ￰10￱ despite this gloom, spending patterns reveal resilience , with credit use expanding and households largely keeping up with their financial ￰11￱ are drawing on savings and credit to maintain consumption, sustaining growth in the near term but raising questions about sustainability if wage growth continues to lag.

Together, these dynamics highlight a fragile equilibrium : policymakers are caught between inflation control and employment support, while households are stretching to preserve purchasing power. Meanwhile, the digital asset sector is seeing rapid shifts across exchanges, regulators, and ￰12￱ the US, Cboe plans to launch “ Continuous Futures ” for Bitcoin and Ether this November, offering long-term exposure within a regulated ￰13￱ Kong, meanwhile, is proposing to ease capital rules for banks holding compliant digital assets, aiming to attract institutions while keeping strict buffers for riskier ￰14￱ the corporate front, Cyprus-based Robin Energy completed a $5 million Bitcoin allocation , briefly sending its stock up more than 90 percent.

Together, these moves highlight how crypto is becoming more embedded in global finance, through regulated markets, evolving policy, and corporate adoption.