The cryptocurrency market surged on Thursday after news of the US economy contracting for the second straight quarter.
Bitcoin is trending higher, currently trading at around $23,703. In the past 24 hours, the largest cryptocurrency by market value has jumped more than 10%, according to CoinGecko, reacting positively after the US Federal Reserve raised interest rates on Wednesday. Ethereum is also in the green, up 16% over the same period. Ether (ETH) is currently trading at around $1,725.
Altcoins, or cryptocurrencies outside of Bitcoin, also surged higher in the news. Cardano’s ADA, Solana’s SOL, and Polkadot’s DOT, for example, are up 9%, 13%, and 15%, respectively, over the past day.
“It gives the markets a bit of cushion after the short-lived ETH merger rally fizzled out,” said Michael Safai, founder and managing partner of Dexterity Capital. Fortune in an email. “While it was promising to see crypto markets regain some of their own independent price action, the global macro will still lead the way for some time to come.”
Gross domestic product (GDP) fell at an adjusted annual rate of 0.9% from April to June, the Commerce Department said Thursday, stoking renewed fears of recession.
Trading “will continue to be range bound, perhaps a slightly higher range,” Safai predicts. “Crypto is always going to be vulnerable to any sudden shifts in the macroeconomic and geopolitical landscape, which could lead to downward moves long before the next Fed meeting.”
The overall market is also trending higher despite macroeconomic factors.
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