The Bitcoin (BTC) course has just made a dive thanks to poor economic figures from the United States. The chance of a recession seems to have made a big leap, and some analysts even say that we are already in a recession. Enough reason for panic, and we see that in the financial markets.
Investors fear recession
The biggest shock came from the gross domestic product (GDP) of the first quarter. A small growth of 0.2%was counted, but the economy is raging by 0.3%. Of course this has to do with the unrest that President Donald Trump sows with his sky -high import rates.
The chance of a recession now seems life -size. More and more analysts even think that the largest economy in the world is already in a recession. Spencer Hakimian, founder of Tolou Capital Management,, for example, said it aloud on social media platform X: “Welcome to the recession.”
On the PLYMARKET forecast platform, the chance of a recession this year has risen to its highest level of up to 72%.
Not only the GDP disappoints. The employment figures were also disappointing. The so -called ADP employment change outside of agriculture – a measurement of how many jobs have been added in the private sector – only came on 62,000 new jobs. While 114,000 were expected.
A recession means that people and companies spend less, unemployment rises and there is a lot of uncertainty. For investors that is toxic: they withdraw their money and therefore the prices of shares and crypto fall.
But it also forces the central bank to interest (to boost the economy again) and that is in the long run good news for risky assets such as Crypto. After all, money becomes cheaper, so liquidity is increasing.
Bitcoin, Ethereum & XRP dalen
The dates were released at 2:30 PM Dutch time. At that time, the Bitcoin rate was still above $ 95,000, but now it is slightly lower at $ 94,500. That is only 0.26% lower than 24 hours ago.
Most altcoins were already in red today, but have now dropped a little further. Ethereum (ETH) is 2.60% in the min, XRP has fallen 3.57% and Cardano (ADA) 3.55%.
Source: https://newsbit.nl/bitcoin-koers-klapt-omlaag-door-data-uit-vs-welkom-in-een-recessie/
