A prominent hedge fund economist is raising red flags about stagflation creeping into the U.S. economy in the near term. The combination of stagnant growth and rising inflation could reshape market dynamics across traditional and digital assets alike.

For crypto investors, stagflation scenarios matter more than most realize. When inflation runs hot while economic growth stalls, investors typically seek alternative stores of value—which is where cryptocurrencies historically enter the conversation. At the same time, stagflation often triggers central bank policy confusion, adding volatility to risk assets.

The economist's warning reflects growing concerns among financial professionals about economic headwinds building up. Whether this plays out or gets averted will likely influence both traditional markets and the broader crypto landscape in coming months.