Bitcoin (BTC) teetered in a narrow trading range at Wall Street’s opening on Sept. 29 as official data plunged the US economy into recession.
US Meets Technological Definition of Recession
Data from Cointelegraph Markets Pro and TradingView show that BTC/USD is just above $19,000 at the time of writing.
The pair weathered dismal numbers in the US, with gross domestic product (GDP) growth estimated at -0.6% in the second quarter. This meant the US met the standard criteria for a recession – two straight quarters of negative growth, despite White House protests to the contrary.
‘Everyone talks about recession as if it shouldn’t happen,’ says Financial Commentary Resource Cobessi Letter reacted.
“If you have a healthy economy in the long run, you will have a lot of recessions. If there are no recessions, you will just have bubbles. It doesn’t work.”
Meanwhile, analyzing the situation in Europe, Robin Brooks, chief economist at the Institute of International Finance (IIF), said: warned He also said a “deep” recession was about to hit the eurozone, citing consumer confidence data.
“Remember, with the negative Q2 GDP revision, the White House has stated that this is not the definition of a recession,” wrote the popular Twitter account Unusual Whales. continuation Confusion over what constitutes a recession that began earlier this year.
“Rather, they support the NBER, where ‘a significant drop in economic activity spreads across the economy and lasts for more than a few months’.”
The event follows the Bank of England’s sudden intervention in the UK bond market, returning to quantitative easing (QE) in a move reminiscent of the atmosphere at the birth of Bitcoin.
$19,000 looks volatile
Despite this, Bitcoin price action managed to avoid significant volatility as numbers flowed in, even though the monthly close is just one day away.
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At the time of writing, BTC/USD was trying to break out of the $19,000 support.
Noting that the -0.6% GDP result was better than the forecast of -0.9%, the on-chain analytical resource Material Indicators nevertheless had little reason to celebrate.
Alongside screenshots of BTC/USD orderbook on Binance, Material Indicators warns that the market bottom is “not in”.
“Strong economic report means Fed tightening has not yet had much impact. predicted Some of the accompanying comments.
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Bitcoin Price Drops Below $19,000 As Official Data Confirms US Recession
Source link Bitcoin Price Drops Below $19,000 As Official Data Confirms US Recession