Bitcoin (BTC) investors are fighting to keep the price above $23,000 as the US economy faces a technical recession. The US economy shrank for the second consecutive quarter as the GDP dropped by 0.9%.
This follows a contraction of 1.6% in the year's first three months. The new announcement has caused cryptocurrencies to react badly.
Bitcoin is now struggling between $23,000 and $24,000 as the United States has formally entered a "technical recession."
When the information became known, Bitcoin became more erratic. The largest virtual currency experienced a brief period of price fluctuation between $22,600 and $23,888.
Analysts are already speculating as to whether the FED could have started raising interest rates earlier. Due to this, the economy might have been less negatively affected by the change from low to higher interest rates.
Another point that merits attention is the fact that Western economies, particularly those in Europe, have been considerably more negatively impacted by Russian sanctions than Russia itself. We can see that these two policies may have led to the current recession.
Bitcoin appears to be trading extremely close to $23,000 despite the current economic statement and the early turbulence in the crypto market. It appears that traders are defending this pricing.
UseTheBitcoin noted earlier today that purchasing pressure is still keeping BTC near these prices. Experts predict that BTC may surpass $100,000 in the upcoming years.
The economy has already entered a "stagflation" phase with inflation in the US hovering around 10% and a technical recession. When the economy is in decline while inflation is still quite high, this condition is referred to as.
While this kind of economic climate was very typical for developing nations, it is now a fact of life in both Europe and the US.
The market's future behavior and how Bitcoin responds to this kind of market scenario will be closely watched.
Not to be forgotten is the fact that the largest cryptocurrency in the world has declined from its record high by more than 73%, from the top ($69,000) to the low ($18,000).
Some experts think it's even feasible that Bitcoin's bear trend will continue in the foreseeable future.
It is important to note that many "black swan" events in the cryptocurrency market over the past few months have had an impact on the price of the majority of digital currencies.
For instance, one of the key factors that caused Bitcoin to go below $20,000 for the first time since 2020 was the collapse of the Terra (LUNA) ecosystem.