Bitcoin (BTC) faltered in its narrow trading range at the September 29 Wall Street open as official data put the US economy in recession.
The US meets the technical definition of a recession
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was still above $19,000 at the time of writing.
The pair weathered gloomy figures from the US, with second-quarter gross domestic product (GDP) growth estimated at -0.6%. This, despite protests from the White House to the contrary, meant that the US met the standard criteria for a recession: two consecutive quarters of negative growth.
“Everyone talks about recessions as if they never happen,” financial commentary resource The Kobeissi Letter he reacted.
“Any economy that’s healthy in the long run is going to have a lot of recessions. If you never have a recession, you just have a bubble. In that case, we just have a bubble and a recession. Fake markets don’t work.”
Meanwhile, analyzing the situation in Europe, Robin Brooks, chief economist at the Institute of International Finance (IIF), warned that a “deep” recession was also about to hit the eurozone due to consumer confidence data.
“With the second negative quarterly GDP revision, remember that the White House has stated that this is not the definition of a recession,” the popular Twitter account Unusual Whales it continued about the confusion over what constitutes a recession that began earlier this year.
“Rather, they defend the NBER, which is ‘a significant decline in economic activity spread across the economy lasting more than a few months.'”
The event follows the Bank of England’s abrupt 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 seems shaky
However, Bitcoin price action managed to avoid any major volatility as the numbers rolled in, even with the monthly close just a day away.
Related: Bitcoin ‘Great Detox’ Could Cause BTC Price to Fall to $12,000: Research
At the time of writing, BTC/USD was trying to break above the $19,000 support.
Given that the -0.6% GDP result was better than the -0.9% forecast, the chain’s analysis resource Material Indicators had little reason to celebrate.
Alongside a screenshot of the BTC/USD order book on Binance, Material Indicators warned that the market bottom “wasn’t”.
“A strong economic report means Fed tightening has had little or no impact yet. Translation: more aggressive rate hikes through Q4 and 2023,” he said. predicted in part from the attached comments.
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