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Official data confirms US recession with Bitcoin price falling to $19K
Bitcoin ( BitcoinTC), wobbled in its narrow trading range on Sept. 29, Wall Street Open, as official data placed the United States economy into recession.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
The U.S. meets the technical definition of recession
Data from Cointelegraph Markets Pro, and tradingView show that BTC/USD hovered just above $19,000 as of the writing.
The pair survived the gloomy statistics for the United States with the second quarter gross national product (GDP), growth of -0.6%. Despite protestations from the White House, this meant that the U.S. had met the standard criteria of recession, with two consecutive quarters without growth.
“Everyone talks as though recessions should never happen,” financial commentary resource The Kobeissi Letter responded.
“A healthy economy will experience many recessions over the long-term. A bubble is one that does not experience a recession. This is a case of a bubble and recession. Fake markets are not real.
Analyzing the European situation, Robin Brooks (chief economist at IIF), warned about a “deep” economic recession. This was based on consumer confidence data.
“With the second quarter GDP revision negative the White House stated that this isn’t the definition of recession,” popular Twitter account Unusual whales continued on the confusion about what constitutes a slump which started earlier in the year.
They advocate for NBER’s which is “a significant decline of economic activity spread across all sectors of the economy lasting longer than a few weeks.”
This event occurs after the Bank of England intervenes abruptly in the United Kingdom’s bond market. They then return to quantitative easing (QE), in a move that is reminiscent of the atmosphere during Bitcoin’s birth.
$19,000 seems unstable
However, the Bitcoin price action managed to avoid significant volatility even though the monthly close was just one day away.
Similar: Bitcoin’s ‘great detox’ could cause a drop in the price to $12K.
BTC/USD was trying to break $19,000 support at the time of writing.
Although the -0.6% GDP result was better that the forecasted -0.9%, Material Indicators, an on-chain analytics resource, had little to celebrate.
Material Indicators shared a screenshot from the Binance BTC/USD order books and warned that the market bottom was not in.
Strong economic report indicates that FED tightening is not having much, if any, impact. Translation: More aggressive rate increases through Q4 and into 2023,” it predicted as part of the accompanying comments.
BTC/USD order book data (Binance) chart. Source: Material Indicators/ Twitter
These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.
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The Musk-Saylor Inflation Debate: Crypto vs. Physical
Rising inflation is threatening to further eat up the purchasing power the global fiat ecosystem. This makes it imperative that we find the right hedge against a declining economy, especially for the general population around the globe.
Elon Musk , Tesla CEO, asked about the likely inflation rate in the next few years to gauge global investors’ perceptions. American billionaire and MicroStrategy CEO Michael J. Saylor shared his views on the subject. He stated that with rising inflation, the capital cash flow would shift away from traditional fiat to more scarce assets like Bitcoin ( TTC).
The rate of asset inflation and USD consumer inflation will be double that of the previous year. Weaker currencies are likely to collapse and capital will flow from cash, debt, and value stocks to rare property like #bitcoin.
Michael Saylor (@saylor).
March 14, 2022
The last six months have seen unprecedented inflationary pressure in major economies, including the United Kingdom and Turkey, Russia, and the United States. This is due to global uncertainties and disruptions caused by cross-border conflicts as well as the COVID-19 pandemic.
Musk responded to Saylor’s suggestion for investing in rare assets to combat rising inflation of the United States dollar.
The discussion was open to the public, who dismissed Saylor’s suggestion that BTC be used as an inflation hedge due to personal investments. Musk however acknowledged that investors can maintain their purchasing power by investing in physical property and company stock, which are both scarce assets.
For those seeking advice, this thread will generally advise that it is better to have physical items such as a home or stocks in companies that make quality products than to invest your dollars when inflation is high.
I don’t intend to sell my Bitcoin, Ethereum, or Doge fwiw.
Elon Musk (@elonmusk).
March 14, 2022
Musk also shared his intention to keep hodling Ether ( EETH) and BTC ( DOGE), amid rising inflation, “for what it’s value.”
Tesla will sell some merchandise with Doge. We’ll see how it goes.
Elon Musk (@elonmusk).
December 14, 2021
Musk announced in December 2021 that Tesla would accept DOGE as merchandise. This sparked the price of the meme token by 25%.
Doge/USD 1-hour candle chart (Bittrex), December 2021. Source: TradingView
Musk’s recent tweet supporting cryptocurrencies has not had any positive effect on the declining prices.
Related: Dogecoin Foundation trademarks logos and name within the EU
Dogecoin Foundation registered the trademarks “Doge,” Dogecoin, and the associated logos in order to increase the legitimacy of the ecosystem.
We were forced to register the logos created by Christine Ricks for Dogecoin because of the increasing number of attempts made in bad faith to register trademarks for “Doge”, Dogecoin, and other names. This was to ensure that all good shibs are protected within the @Dogecoin community. 2/2
Dogecoin Foundation (@DogecoinFdn).
March 2, 2022
Cointelegraph reported that Jens Wiechers, a member of the Dogecoin executive committee, stated that the move was to stop unaffiliated individuals attempting to register the names and to use trademarks to commit extortion.
As rising inflation threatens to eat up further the purchasing power of the global fiat ecosystem,...