This week has been a crucial week for not just the crypto market, but also for the global economy. The week had lined up events such as the FOMC meeting, the Federal Reserve’s interest rate hikes along with the release of the GDP report.
Yesterday, July 27th, after the FOMC meeting, the Federal Reserve raised the interest rates by another 0.75%. However, the crypto market reacted positively to the news as the first born currency, Bitcoin regained its $23,000 level and Ethereum claimed the $1600 mark again.
US GDP At -0.9%
Today the much awaited US GDP report for the second financial quarter has been released and it stands at -0.9%. As per US Bureau of Economic analysis, the GDP rate has dropped below the expectation of economists rate of 0.5% increase.
As per the industry experts, this drop in the US GDP has been a beneficiary one and thus, this indicates that it meets the general definition of recession.
On the other hand, Federal Reserve chair personnels, Jerome Powell and the White House have previously stated that there is no recession seen. Meanwhile, President Joe Biden has also claimed that he doesn’t feel the US will enter the recession period.
Analysts Take On Recession
On the contrary, most of the crypto experts have slashed the top US officials for such a comment. Michael Burry, founder of Scion Capital was seen taking shots on White House for getting involved in damage control.
Michael van de Poppe, has advised his followers and traders in general that no matter how the economy reacts, Bitcoin traders reaction should not be in relation to the ongoing news.
If the recession pops in, then the crypto market reaction could be a mixed one. One of the crypto traders and experts, Gareth Soloway claims that initially, the market dropped due to fear of recession, but the market was quick enough to regain the bull run. However, he believes it’s the hard time for investors and traders.