With the Federal Reserve now openly warning of stagflation, Bitcoin is rapidly emerging as a preferred option for investors seeking insulation from mounting economic stress, says deVere Group CEO Nigel Green. The expected rise in US consumer prices, coupled with weakening labor and investment data, signals that the US is now firmly in stagflation—a term used to describe the rare and dangerous combination of persistent inflation, low growth, and rising unemployment.
“Stagflation is no longer an academic debate—it appears to be the Fed’s base case,” Green said. “When central banks start using the word publicly, it confirms what markets are already feeling, and in this environment, Bitcoin becomes a standout option.”
Headline inflation is forecast to climb to 2.5%, with core inflation up to 2.9%. Tariffs introduced under President Trump—now hitting many key imports with 10–50% duties—are fuelling price pressures, particularly in consumer goods like clothing, furniture, and auto components. At the same time, jobless claims are rising and business investment is slowing.
“This is policy-driven inflation combined with real economic weakness,” explained Green. “When those forces collide, conventional assets become vulnerable. Bitcoin is one of the few that stands apart.”
Recently, Fed Chair Jerome Powell acknowledged that inflation is not subsiding as expected and that recent data suggest a deteriorating outlook for the broader economy.
The central bank’s messaging has shifted, reflecting the growing view that it may be cornered—unable to raise rates without deepening the downturn, and unable to cut them without fuelling inflation.
“This is what stagflation looks like,” Green added. “There’s no obvious policy response. That’s why we’re seeing clients globally repositioning—and Bitcoin is increasingly where they’re going.”
Bitcoin’s appeal lies in its independence from governments, its fixed supply, and its growing role as a hedge against both monetary distortion and fiat currency risk. As traditional safe havens face pressure, the case for decentralized stores of value is strengthening fast.
“Bitcoin doesn’t rely on interest rate policy or political stability. It operates on entirely different rails,” Green noted. “This makes it extremely attractive in a moment like this, where markets are struggling to price what comes next.”
deVere Group has long advocated for including established digital assets in portfolios, particularly in times of macro dislocation and rising uncertainty. The current environment, says the deVere chief executive, is a textbook example.
“Investors need to be positioned before the next wave of capital moves. Waiting for clarity means missing the repricing.”
With Bitcoin consolidating and adoption expanding globally, the asset is no longer viewed as speculative. It’s being approached as a strategic allocation by those who recognize the constraints now facing policymakers, and the risks those constraints pose to traditional asset classes.
“The Fed has made it clear: the inflation problem hasn’t gone away, and the growth problem is getting worse,” Green concluded. “In that scenario, Bitcoin’s characteristics are exactly what savvy investors are looking for.”
