GDP fell for the first time since the start of the pandemic in 2020, showing signs of slowing economic growth. But what does it mean for cryptocurrencies?
The U.S. economy slowed markedly during the first three months of 2022. The data, provided by the US government, show signs of economic contraction for the first time in two years.
The gross domestic product (GDP) of the American nation, the broadest measure of economic activity, fell by 0.4% between January and March, equivalent to an annual decline of 1.4%. the Bureau of Economic Analysis said in a published report Thursday.
Las métricas muestran que la economía del país se ha contraído severamente, tomando en cuenta que para el primer trimestre de 2021 se había registrado un crecimiento de 1,7%, o un 6,9% sobre una base anualizada. La desaceleración se produce en medio de un panorama geopolítico tenso, con la guerra entre Rusia y Ucrania provocando aumentos en los precios del petróleo.
U.S. Economic Contraction.
The government agency said the slowdown was caused by a rise in imports and a drop in private inventory investment, exports, federal government spending, and state and local government spending, according to a report by the U.S. government agency.The Guardian. It should be noted that this is the worst performance since the second quarter of 2020, when the pandemic began. .
The news came as a surprise, as the data was reported to be far from in line with economists’ estimates, which anticipated a 1% increase in GDP for the period. Paul Ashworth, chief economist at Capital capital is most commonly defined as the large sum of money you would use to invest. Economics for the United States, described the fall as ” unexpectedly severe “, as quoted by the news media.
Ashworth also noted that the report probably won’t stop the Federal Reserve (FED), the nation’s central bank, from continuing to raise interest rates. Recall that the Fed raised rates in March when inflation hit a 40-year high of 7.9%. Fed Chairman Jerome Powell suggested a few days ago a possible rate hike of 0.5 percentage points, double the March increase.
The administration of U.S. President Joe Biden was optimistic despite the figures, and assured that the national economy is “ resilient in the face of historic challenges “. In a statement issued on Thursday, and picked up by CNN he said:
Recession? What does it mean for Bitcoin?
The contracting economic data raised concerns about the imminent arrival of an economic recession. After all, as indicated by the CNBC The generally accepted definition of economic recession refers to when there are two consecutive quarters of negative decline for a country’s gross domestic product.
While the release of the report did not seem to have a particular impact on cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. markets, the scenario of a possible recession could affect the prices of cryptocurrencies. Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and other cryptocurrencies in the medium term, some analysts warn.
“ Today’s numbers suggest we are probably closer to a recession than previously thought. “said Joe Haggenmiller, head of markets at XBTO, a cryptofinance firm, to CoinDesk . “ Therefore, it stands to reason that if negative growth persists, stock markets may suffer and Bitcoin will suffer as well due to its positive correlation. “.
As of press time, the price of Bitcoin remains below $40,000 amid what appears to be a modest downtrend in the broader digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. market.
Inflation Rises in U.S. and Europe
A pesar de las cifras, no todos los economistas han manifestado preocupaciones, ya que, si bien el PIB general fue negativo, los componentes subyacentes, como el consumo, la inversión fija y la demanda, se mantuvieron fuertes, como señala CoinDesk .
Meanwhile, some experts have also pointed out that a recession might not necessarily be negative for cryptocurrencies. The strategist at Bank of America (BoFA)Michael Hartnett, who predicted earlier this month that the U.S. economy could enter a recession, believes that such a scenario could boosting cryptocurrency prices above bonds and stocks .
The latest GDP data in the U.S. coincided with an upturn in the recent inflation a general increase in prices and fall in the purchasing value of money. report . L he Bureau of Economic Analysis said Friday that the price index of basic personal consumption expenditures increased by 5.2% over the previous year as reported by CNBC . The index, which measures the costs consumers pay on a wide range of items and tracks how behavior changes in response to market an area or arena, online or offline, in which commercial dealings are conducted. dynamics, is the Fed’s favorite inflation measure.
In Europe, the picture is not much different, as inflation in the euro zone is also rising to record highs. In April, inflation in the countries of the European bloc rose to 7.5%, according to estimates of the Statistical Office of Europe published on Friday.
- U.S. Inflation Reaches 40-Year High of 8.5%, Highest in 40 Years
- Data shows Bitcoin inflation is 5 times lower than the U.S. dollar
- Elon Musk gives advice on rising inflation, says he won’t sell his Bitcoin, Ether the form of payment used in the operation of the distribution application platform, Ethereum. or Doge
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash