US Economy Recessed With -0.9% GDP, Bitcoin Seems to Stand Out

Contrary to the forecast, the US GDP decreased by 0.9% in the second quarter. This means that the US economy officially entered a recession phase. Prior to that news, BTC showed signs of bullishness and approached the $24k mark.

BTC before news that US GDP in Q2 decreased by 0.9%

Contrary to the forecast of economic observers that the US GDP in Q2 will increase, the actual data returned shows that the gross domestic product of the world’s largest economy has decreased by 0.9%. It means that the US economy is showing signs of recession when GDP fell for 2 consecutive quarters.

With the US economy currently in a technical recession, Bitcoin seems to be coming to the fore. The leading cryptocurrency has gained over 900 points in market value since the GDP figure was released. Now that Bitcoin’s bullish momentum has been confirmed, the leading cryptocurrency is showing early signals that it wants to move higher.

Although the bearish signal predicts a retracement to $23,260 or even $22,690, BTC is showing strength as it gets closer to $24,000.

While macroeconomic conditions continue to deteriorate, market participants can expect the latest US GDP figures to be priced in. Negative growth could also force the Fed to switch to an accommodative monetary policy sooner than anticipated. Even with so much uncertainty in the global economy, it looks like crypto assets are finding strength for a short-term recovery.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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