Bitcoin Price Slips Below $19,000, US Now in Recession?

Bitcoin Price Slips Below $19,000, US Now in Recession?

Bitcoin (BTC) fell sharply within the prevailing price range today, September 29, after fresh economic data put pressure on financial markets.

Bitcoin Price Chart (Bitstamp). Source: TradingView

USA in recession, or not?

As of press time, Bitcoin price is only slightly above $19,000, according to data from Cointelegraph Markets Pro and TradingView.

The downturn was triggered by new negative economic figures from the USA, which show that US gross domestic product (GDP) growth is declining at -0.6%. This technically puts the US in a recession as it has now experienced two consecutive quarters of negative growth.

“Everyone always talks about recessions as if they should never happen,” say the financial journalists at The Kobeissi Letter react. To which they add:

“Any healthy economy will have many recessions over the long term. If there are no recessions, then you are in a permanent bubble. There’s just a bubble and a big recession. Fake markets don’t work.”

Robin Brooks, der Chefökonom des Institute of International Finance (IIF) warns meanwhile, with a view to Europe, that the eurozone is also facing a “deep” recession. He sees the lack of consumer confidence as an indicator for this thesis, which is now even lower than during the financial crisis of 2012.

“Despite our second consecutive quarter of negative growth, the White House is reminding us that we are not in a recession,” Twitter analyst Unusual Whales said notes. So there seems to be disagreement about the interpretation of the current situation. To which he adds:

“Instead, they stick to the National Bureau of Economic Research (NBER) definition, which defines a recession as ‘a significant decline in economic activity in multiple areas of the economy over a period of several months.'”

In Great Britain, the Bank of England had recently intervened quite abruptly in the British bond market and resumed quantitative easing in order to counteract the ailing economy.

A shaky $19,000

After all, the Bitcoin course was able to prevent a crash from the applicable price range, but a negative monthly close is now all the more likely.

At press time, BTC is working towards reestablishing $19,000 as firm support.

Material Indicators crypto analysts caution that negative growth of -0.6% is better than the -0.9% forecast drop.

The experts still see no reason to be happy, because in view of Binance’s order books, they warn that the bottoming out is far from over.

“The central bank’s quantitative tightening has had little effect so far. So we are likely to see even more aggressive rate hikes in Q4 and early 2023,” the analysts said fear.

Bitcoin-Orderbuch (Binance). Quelle: Material Indicators/ Twitter

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