Bitcoin (BTC) regained more lost ground on the July 28 Wall Street open amid confusion over whether the United States had entered a new recession.
Analysts call recession for United States on GDP print
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it tested $23,000 for support after a leg up on the previous day’s Federal Reserve rate hike.
Momentum benefited from U.S. GDP data, which fell for a second quarter in a row, thus meeting the requirements for a recession in the economy.
US Economy in technical recession as GDP shrinks for a second quarter. Q2 GDP fell at a 0.9% annualized rate as inventories, residential investment subtract from growth after a 1.6% decline in the first three months of the year. pic.twitter.com/5cXb6uNyWT
— Holger Zschaepitz (@Schuldensuehner) July 28, 2022
The situation remained unclear, however, thanks to comments from both Fed Chair Jerome Powell and the White House, both of whom insisted that no recession had arrived or was even forecast.
“While Powell stated that the U.S. is not in a recession, numbers from GDP gave two consecutive quarters of negative growth, meaning that the United States is in a recession!” Cointelegraph contributor Michaël van de Poppe summarized about the curious status quo on the day.
U.S. equities opened flat, while Bitcoin remained undecided on overall trajectory after reaching $23,450 overnight.
Van de Poppe added that regardless of the state of the economy, BTC traders should not act purely based on the latest news.
“Now we know that the United States is in a recession, does that mean that we should adjust our trading strategies? No! The phrase recession doesn’t represent any variable you can work with,” part of a further Twitter post stated.
Meanwhile, trader and analyst Gareth Soloway predicted harder times for risk asset investors to come, as a deeper recession was inevitable thanks to Fed rate hikes.
#GDP comes out -0.9%….
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