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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According to leaked documents, FTX revenues grew by 1000% in a single year.
FTX was one of the few crypto exchanges that had a front row seat to the crypto hype in 2021. This was back when Bitcoin ( BTC_) and other cryptocurrencies reached their highest. According to internal documents, FTX’s revenue grew 1000% in 2021 due to massive customer onboarding, partnerships and sponsorships.
CNBC claimed access to documents in financials for FY 2020-2021.
The revenue breakdown shows a 1842.85% rise in operating income for FTX from $14 million up to $272 millions in one year. The net income of the crypto exchange was $388 million, an increase of 2182.35% over last year’s $17million.
According to reports, FTX made $270 million during the first quarter 2022. The exchange’s performance during the crypto winter has yet to be disclosed. Despite the excellent first quarter performance, the crypto winter has likely had an impact on the growth trajectory due to multiple market crashes.
Further, the report claims that FTX had $2.5 billion in cash at the end of 2021 and a 27% profit margin.
Cointelegraph has yet to hear back from FTX on its request for comment.
Related: FTX US is among five companies that will receive cease-and-desist letters from FDIC
Binance CEO Changpeng Zhao has recently expressed concern about jitters. This is a phenomenon in which an existing trade order is delayed to make way for newer trades.
I just learned a new term, jitters. Sometimes your orders may be delayed for a while on one exchange. However, other orders may come in. This happens so often on an exchange that traders invented a term for it: jitters. (Front running)
— CZ Binance (@cz_binance).
August 19, 2022
Although CZ didn’t explicitly target any specific exchange during the discussion it did assume that it was aimed towards FTX. “All of you guys knew, and didn’t mention anything. He added that we must fight the bad players.
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