Bitcoin price falls below $19K as official data confirms US recession
Bitcoin (BTC) wobbled in its narrow trading range at the Wall Street open on September 29 as official data tipped the US economy into recession.
The US meets the technical definition of a recession
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD still hovering just above $19,000 at the time of writing.
The pair managed dismal figures for the US, with growth in gross domestic product (GDP) in the second quarter estimated at -0.6%. This, despite protests from the White House to the contrary, meant that the US met the standard criteria for a recession – two consecutive quarters of negative growth.
“Everybody’s talking about recessions like they’re never going to happen,” financial commentary resource The Kobeissi Letter reacted.
“Any economy that is healthy in the long run will have many recessions. If you never have a recession, you just have a bubble. In this case, we just have a bubble and a recession. False markets don’t work.”
Meanwhile, analyzing the situation in Europe, Robin Brooks, chief economist at the Institute of International Finance (IIF), warned that a “deep” recession was also about to hit the eurozone on the back of data from consumer confidence.
“With the second quarter GDP revision negative, a reminder that the White House has stated that this is not the definition of a recession,” the popular Twitter account Unusual Whales continued about the confusion about what constitutes a recession that began earlier this year.
Rather, they advocate NBERs, which are “a significant decline in economic activity spread across the economy lasting more than a few months.”
The event follows the Bank of England’s abrupt intervention in the UK bond market, returning to quantitative easing (QE) in a move reminiscent of the atmosphere at the birth of Bitcoin.
$19,000 looks unstable
Bitcoin price action still managed to avoid significant volatility as the numbers poured in, even with the end of the month just a day away.
Related: Bitcoin ‘great detox’ could trigger BTC price drop to $12K: Research
At the time of writing, BTC/USD was attempting to break through the $19,000 support.
Noting that the -0.6% GDP result was better than the -0.9% forecast, chain analysis resource materials indicators still had little reason to celebrate.
Next to a screenshot of the BTC/USD order book on Binance, Material Indicators warned that the market bottom was “not in.”
“Strong economic report means FED tightening hasn’t had much if any impact yet. Translation: More aggressive rate hikes through Q4 and into 2023,” the predicted in a section of accompanying comments.
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