Following news that the United States economy shrank for another quarter, recession fears drive crypto rallies with BTC and ETH seeing boosts.
Trading above $23,000, Bitcoin continues to trend upward. Over the last 24 hours, the largest crypto asset jumped by over 10% – per CoinGecko. This seems to be a positive reaction to the raised interest rates shown by the U.S. Federal Reserve on Wednesday.
Ethereum reacted similarly, rising 16% and back into the green over the same period of time. Currently, ETH trades for around $1,700.
Altcoins also saw some love following the news, with DOT, ADA, and SOL rising in value over the last day.
In an email to Fortune, Michael Safai, founder and managing partner of Dexterity Capital said the following:
“This is giving markets a bit of cushion after the short-lived ETH merge rally lost steam. While it was promising to see that crypto markets regain some of their own independent price action, global macro is still going to lead the way for some time.”
From April to June, the GDP fell at an adjusted rate of 0.9%, fueling recession fears to drive crypto prices. Moreover, Safai predicts that trading is set to “continue to be range-bound, perhaps at a slightly higher range. Crypto is still going to be vulnerable to any sudden shifts in the macroeconomic and geopolitical landscape, which could lead to some downward moves well before the next Fed meeting.”
Despite macroeconomic factors, the overall market continues to grow.
Biden Criticized on Twitter
Talking to the press, U.S. President Joe Biden downplayed the gloom of the economic report. President Biden insisted that it “doesn’t sound like a recession to me.”
I've never seen Biden move faster than today when he said, "That doesn't sound like a recession to me…" and immediately ran away from reporters. pic.twitter.com/fGT7PwuuC5— Tim Young (@TimRunsHisMouth) July 28, 2022
In his own post, author David Marcus stated, “It’s reassuring to be lied to in such a calm and grandfatherly way.”
According to some reports, the denial and quick exit of the President resulted in a broad range of similar posts.
Still, recession or not, the economic outlook for the rest of the year isn’t ideal. Across the country, there are rising and falling fuel prices and a cost of living crisis driven by a range of factors, domestic and international.