Bitcoin and Ethereum are pumping after the U.S. Bureau of Economic Analysis released its official GDP data for Q2 2022. The data shows that real GDP decreased by 0.9% year over year, marking the nation’s second consecutive quarter of negative GDP growth.
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- Bitcoin traded for about $22,700 prior to the bureau’s release at 08:30 EST. Meanwhile, Ethereum traded for about $1,630.
- Both coins then began to climb over the following hours, with Bitcoin reaching back to $21,114 at about 11:53, and Ethereum hitting $1,754 at the same time. Each has since pulled back to $23,800 and $1,720 respectively, at writing time.
- Ethereum’s rise is compiled with newfound enthusiasm over its upcoming Merge upgrade, which will take its consensus mechanism from proof of work to proof of stake.
- The pump follows a fairly bullish reaction to the Federal Reserve’s 75 basis point rate hike on Wednesday – which has normally been viewed as bearish for crypto and stocks.
- By many countries’ definitions and common measurements, two consecutive quarters of negative GDP means a nation has technically entered recession. However, the White House denies that the U.S. economy has entered such a state, claiming that recessions are determined by a more “holistic look at the data.”
- When asked at a press conference on Wednesday, Federal Reserve Chairman Jerome Powell stated that he did not believe the economy was in a recession. However, he claimed that it is “softening.”
