Bitcoin (BTC) fluctuated in its narrow trading range at the opening of Wall Street on September 29 as official data sent the US economy into recession.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View
The United States meets the technical definition of recession
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is still hovering above $19,000 at the time of writing.
The pair performed poorly for the US, with GDP growth estimated at -0.6% in the second quarter. This, despite the White House’s protests to the contrary, meant that the US had met the benchmark of a record recession for two consecutive quarters of negative growth.
Financial commentary The Kobeissi Letter responded: “Everyone talks about recessions as if they’ll never happen.”
In any healthy economy, there will be many recessions in the long run. If you don’t have a stagnation, you will only have a bubble. In this case, we only have a bubble and a stagnation. False markets don’t work.”
Analyzing the situation in Europe, Robin Brooks, chief economist at the Institute of International Finance (IIF), warned that a “deep” recession is about to hit the eurozone amid consumer confidence data.
“Since the second quarterly GDP review was negative […] the White House said this is not the definition of a recession,” followed the popular Unusual Whales Twitter account complaining of confusion about what constitutes a recession that began earlier this year. .
Instead, they endorse NBER, which is “a significant decline in economic activity, spreading throughout the economy, and lasting for more than a few months.”
The event comes on the heels of the Bank of England’s surprise intervention in the UK bond market, returning to quantitative easing (QE) in a move reminiscent of the atmosphere when Bitcoin was born.
$19,000 looks unstable
Bitcoin price action still manages to avoid significant swings as the numbers come in, although there is only a day left before the month closes.
Related: Bitcoin ‘Great Detox’ Could Drop BTC Price to $12,000: Study
At the time of writing, BTC/USD is attempting to break the $19,000 support.
Noting that the -0.6% GDP result was better than expectations of -0.9%, the Resource Materials Data for Chain Analysis still has no reason to cheer.
Along with a screenshot of the BTC/USD order book, Binance Material Indicators warned that the bottom of the market was “not coming.”
“The strong economic report means that Fed tightening has had little, if no effect, so far. Translation: More price hikes in the fourth and fourth quarters of 2023,” he said in part from accompanying comments. .