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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.
Bitcoin (BTC) wobbled in its narrow trading range at the Sept. 29 Wall Street open as...