According to the results of April-June 2022 GDP The US shrank by 0.9% compared to the first quarter. Considering that the indicator fell by 1.6% in the January-March period, the economy entered a state of technical recession.

Analysts had expected an average growth of 0.5%.

GDP data released by the US Department of Commerce on July 28 will be revised twice over the next two months.

The day before the episode fed Jerome Powell urged not to place too much emphasis on the upcoming release of macro statistics.

“I don’t think the US is in a recession right now. This is because so many areas of the economy are doing very well. We tend to take initial GDP reports with a grain of salt,” he said. explained.

The Fed Chairman emphasized that the next steps of the monetary authorities to increase interest rates after September will depend on the quality of the incoming macroeconomic data.

The initial estimate of US GDP for the second quarter, coupled with Powell’s statements, reduced the chances of aggressive policy tightening at the next meeting. A 0.5% step is predicted with 76% probability versus 60.5% the day before.

On Wall Street, trading started off negatively. The S&P 500 fell 0.54 percent.

The negative dynamics of the stock indicators has weakened the optimism in the cryptocurrency market. Bitcoin prices retraced non-aggressively from the intraday high above $23,200.

Recall that Grayscale analysts allowed the completion of the crypto winter by the end of March 2023.

Earlier, former Goldman Sachs executive and macro investor Raul Pal predicted that Bitcoin would reverse due to increased global liquidity.

For information on how the Fed rate affects bitcoin price, read the ForkLog tutorials.

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