Semantics? Analysts Unpack 'Technical Recession' as Crypto Markets Recover
Cryptocurrency market analysts uncover the ramifications of consecutive quarters of negative GDP growth in America.
New
Data from the US Commerce Department suggests America has entered a technical recession, but market analysts have highlighted key metrics that suggest investors are optimistic.
The U.S. economy contracted for the second consecutive quarter, according to government data released Thursday, meeting the criteria for a technical recession. The Biden administration argues that the United States is not in a recession, pointing to low unemployment rates and other measures that contradict the argument.
Mati Greenspan, founder and CEO of Quantum Economics, addressed the subject in his latest QE newsletter, noting a paradoxical effect between falling GDP and an increase in stocks and other risky assets.
He attributed the move to the US Federal Reserve's decision to raise interest rates by 0.75%, which saw cryptocurrency markets outperform stocks as Ethere (ETH) surged 5% immediately after announcement.
Related: Bitcoin Bull Run 'Gets Interesting' as BTC Price Hits 6-Week High
Greenspan conceded that the current unemployment rate was "extremely low" compared to other periods of recession, but was not convinced that this was enough to prove that the US economy has not shrunk:< /p>
“For a president to insist that there is no recession when the technical definition is satisfied makes political sense. Better to allow people to argue the semantics than to admit you've made the economy shrink."
Anthony Pompliano also addressed the release of the Q2 GDP figure for the US economy in his daily newsletter, calling the government's comment on the technical definition of a recession "gaslighting", given the unique circumstances of economic measures:< /p>
"This recession is interesting because it is not accompanied...
Cryptocurrency market analysts uncover the ramifications of consecutive quarters of negative GDP growth in America.
New
Data from the US Commerce Department suggests America has entered a technical recession, but market analysts have highlighted key metrics that suggest investors are optimistic.
The U.S. economy contracted for the second consecutive quarter, according to government data released Thursday, meeting the criteria for a technical recession. The Biden administration argues that the United States is not in a recession, pointing to low unemployment rates and other measures that contradict the argument.
Mati Greenspan, founder and CEO of Quantum Economics, addressed the subject in his latest QE newsletter, noting a paradoxical effect between falling GDP and an increase in stocks and other risky assets.
He attributed the move to the US Federal Reserve's decision to raise interest rates by 0.75%, which saw cryptocurrency markets outperform stocks as Ethere (ETH) surged 5% immediately after announcement.
Related: Bitcoin Bull Run 'Gets Interesting' as BTC Price Hits 6-Week High
Greenspan conceded that the current unemployment rate was "extremely low" compared to other periods of recession, but was not convinced that this was enough to prove that the US economy has not shrunk:< /p>
“For a president to insist that there is no recession when the technical definition is satisfied makes political sense. Better to allow people to argue the semantics than to admit you've made the economy shrink."
Anthony Pompliano also addressed the release of the Q2 GDP figure for the US economy in his daily newsletter, calling the government's comment on the technical definition of a recession "gaslighting", given the unique circumstances of economic measures:< /p>
"This recession is interesting because it is not accompanied...
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