A concern is resurfacing among economists and investors: the risk of stagflation. This explosive mix — high inflation, slowing growth, and rising unemployment — could well redefine the rules of the global economic game.
But beyond traditional markets, what impact could this have on cryptocurrencies?
1. Stagflation: the worst of worlds?
Stagflation is when:
• Prices are rising sharply (inflation),
• The economy is no longer growing, or even contracting (stagnation),
• Unemployment is skyrocketing.
This is a feared situation because traditional economic policies no longer work: lowering rates fuels inflation, raising them further stifles growth.
2. Why could Trump trigger this scenario?
a. Price increase (Inflation)
• Massive tariffs on imports (e.g. China, Europe)
• Industrial relocation: 'Made in USA', but more expensive
• Risk of geopolitical tensions → increase in energy prices
b. Economic slowdown
• Trade isolation = fewer exports
• Political uncertainty = a brake on investments
• Explosive public debt = market distrust
c. Rising unemployment
• Direct impact on sectors related to global trade and tech
• Fewer jobs created if companies reduce their investments
3. And what about cryptos?
a. Bitcoin & cryptos = a refuge against inflation?
If the dollar loses value or confidence erodes, Bitcoin, like digital gold, may become a safe haven again. Other cryptos with strong use cases may also benefit.
b. Less liquidity = collapse of fragile projects
Altcoins without solid fundamentals will suffer. Investors will be more demanding: real utility will take precedence over promises.
c. Stablecoins, a new survival tool
In times of high volatility, stablecoins like USDC are a strategic protective tool.
Conclusion: prepare, don't panic
The return of a stagflationary context, especially under a Trump administration, cannot be ruled out. But in this potential chaos, cryptos can also become an opportunity: those that survive will be the pillars of tomorrow.
Strategy: maintain liquidity, focus on fundamentals, and stay agile.
