The potential recession in the U.S. and nuanced discourse from major institutional and media players are returning Bitcoin to a central place in the financial narrative.
Stagflation Returns Bitcoin to the Center of the Financial Debate
Stagflation refers to a financial phenomenon characterized by consistently high inflation coupled with very precarious economic progress. It could even be considered an economic recession, depending on the severity of the case. In fact, this phenomenon allows for the coexistence of both high inflation and high unemployment, despite the Phillips curve stating that they maintain an inverse relationship.
The slowdown in the pace of economic evolution in the United States is closely associated with a decline in the labor market and reductions in consumer spending. All these factors have been exacerbated by the pandemic, various geopolitical situations, and, additionally, by the significant tariff adjustment made by President Donald Trump in early April of this year.
According to information highlighted by Coindesk, for the first quarter of 2025 and the beginning of the second:
- U.S. GDP was -0.3% compared to the 0.2% the government entity had estimated.
- There was a 5% decrease in GDP growth due to the imbalance between imports and exports.
- For the first time since 2022, GDP was negatively impacted by public spending.
- The core PCE price index was estimated to rise by 3.1%; however, it reached 3.5%.
The sum of all these factors triggered an abrupt fall in U.S. stocks: the S&P 500 dropped by 1.5% and the Nasdaq by 2%.
Regarding ADP employment data for last April, only just over 60,000 jobs were generated, marking the weakest increase in the last 9 months.
Bitcoin decreased by 1% after the U.S. economic data was published.
Executives, Banks, and Media Re-evaluate Their Stance on BTC
Due to increasing geopolitical tension, the weakening dollar, and the pressure on the U.S. Federal Reserve, Gabe Selby and Sui Chung of Kraken state that Bitcoin is being propelled into institutional portfolios as a structural asset. “Bitcoin, and cryptocurrencies in general, are increasingly seen as structural components of modern portfolios, especially by investors seeking resilience amidst fiscal instability,” Selby told Cointelegraph.
Furthermore, by the end of April 2025, financial holding JPMorgan successfully completed a pilot phase of operational execution with cryptocurrencies, all with the aim of being more inclusive with its client portfolio.
Likewise, on May 2, 2025, JPMorgan held a conference focused on digital assets, and the CEO of Consumer & Community Banking at JPMorgan Chase, Marianne Lake, stated that there was increased client interest in cryptocurrencies and that necessary infrastructure investment was being made to meet demand securely and in compliance with various regulations.
You can read more about this topic here: BlackRock’s $20 Billion ETF Is Now the World’s Largest Bitcoin Fund
The Turning Point: How 2025 Marks Bitcoin’s Return as a Macro Asset
According to the Consumer Price Index (CPI) from the U.S. Bureau of Labor Statistics (BLS), inflation in the U.S. has experienced considerable fluctuations so far in 2025:
- February: 2.8% — 3.1% (core)
- March: 2.4% — 2.8% (core)
- April: 2.3% — 2.8% (core)
Meanwhile, according to the Bureau of Economic Analysis (BEA), the Personal Consumption Expenditures (PCE) Price Index between February and March 2025 was 2.7% and 2.3% respectively. Like the CPI, it’s above the Federal Reserve’s 2% target in the first months of 2025, and this is an important factor considered when formulating monetary policy.
Additionally, in the first quarter of the current year, the U.S. real GDP saw a 0.3% drop, which was reflected in a decrease in public spending and an increase in imports.
Given all that has occurred, JPMorgan believes that the current momentum Bitcoin is experiencing is due to gold not being at its best. In this regard, JPMorgan shared a note, published by The Block last Wednesday, May 14, 2025, stating: “Between mid-February and mid-April, gold was rising at Bitcoin’s expense, while in the last three weeks we’ve been observing the opposite, that is, Bitcoin rising at gold’s expense.”
Furthermore, as factors bolstering Bitcoin, according to Coindesk, Strategy has a plan to raise over USD $84 billion in Bitcoin purchases by 2027, with an investment of nearly 570,000 BTC.
From Wall Street to Washington: The New Narrative Map for BTC
In recent months, the U.S. has transformed into a battleground where banks, the media, monetary policy, and even the adoption of new digital assets clash, with Bitcoin assuming a leading role. Precisely because of the inflationary situation that has enveloped the United States and the Federal Reserve’s stance on it, greater interest has been sparked in alternative currencies like Bitcoin.
Meanwhile, according to a statement by JPMorgan CEO Jamie Dimon, published in AInvest, traditional banking is becoming less cautious and more active in spaces that embrace digital assets. This is primarily due to client demand.
Major financial outlets are providing more nuanced and in-depth coverage of digital assets, exploring both risks and potential. Likewise, media dedicated to the financial sector are presenting information on digital assets in a more softened and broader way, which paves the way for better adaptation of crypto assets into the traditional financial system.
The way the media has transformed its references to Bitcoin since 2020 compared to how they do so today has varied, and that indicates evolution, even though this cryptocurrency is not exempt from being “volatile.”
Bitcoin for the media in 2020: “Volatile asset,” “Speculative bubble” Bitcoin for the media in 2025: “Digital Store of Value,” “Asset with Growing Fundamentals,” “Part of the Evolution of the Financial System,” “Asset Sensitive to Macroeconomic Policy.”
Why is Bitcoin Re-emerging as a “Safe-Haven Asset” in Traditional Circles?
If there’s one thing that differentiates Bitcoin from traditional currencies, it’s that it operates on a totally decentralized system with a limited supply, which prevents disproportionate inflation and any kind of manipulation by a governmental entity. Furthermore, by not being directly linked to traditional banking, it allows for portfolio diversification during times of crisis.
Moreover, another factor allowing Bitcoin to re-emerge as a safe-haven asset is the concern over latent inflation, according to analysts, which has been growing due to various geopolitical events and financial policies. This has generated distrust in the government and traditional banking, leading to a search for alternative means.
Likewise, Chainalysis points out that Bitcoin’s legitimacy has increased thanks to the creation of regulated economic products, such as Bitcoin ETFs, as well as the rise in institutional adoption. Bitcoin is now analyzed through a macroeconomic lens rather than being categorized as speculation, according to analysts.
Subtle Shifts, Strong Signals: How the Institutional Narrative is Moving
The way Bitcoin is discussed in different settings has undergone subtle yet profound variations in terms of language and the various actions and strategies employed at the media and economic-financial institutional levels.
Regarding language, previously the media focused almost exclusively on Bitcoin’s price fluctuations—that is, its volatility and speculative potential. In contrast, currently, at least up to May 2025, headlines feature language in which Bitcoin is viewed as part of global economic and monetary policy.
In the institutional sphere, actions are much more concrete: according to CoinShares reports, Bitcoin is being included in the strategic and investment analyses of large banks and asset managers concerning the offering of associated products and funds. In fact, evidence of this is the approval and direct capital flow into Bitcoin Spot ETFs in the U.S. in 2024 and so far in 2025.
This hasn’t been an abrupt change, but rather a subtle and sustained one that has allowed for Bitcoin’s acceptance and evolution in the financial, institutional, and media strata. It is now given a more favorable and cautious editorial space and coverage, which indicates it has gained ground.
Conclusion: Stagflation in the U.S., along with geopolitical factors, has prompted institutions and the media to reconsider Bitcoin as a structural and safe-haven asset. The narrative and editorial approach have gradually transformed, moving away from highlighting Bitcoin’s volatility and speculative nature and instead emphasizing its characteristic as a “Digital Store of Value,” in addition to its gained space in the macroeconomic sphere. Bitcoin today enjoys greater acceptance, respect, and positioning within banking, institutions, and the media.
