Your browser does not support the video tag.
Your browser does not support the video tag.
The cryptocurrency market has grown by 22% over the last week, with a $200 billion increase in market worth; the new global market cap of $1.1 trillion is at its highest in five weeks. However, according to analysts, the market is still far from being in a bullish phase.
Given the impact of various macroeconomic issues this month, the momentum might swiftly reverse. Similar factors were responsible for the devastating market crashes that have impacted stocks and cryptocurrencies this year.
By July 28, the US Bureau of Economic Analysis (BEA) will present its preliminary estimate of the second quarter’s gross domestic product (GDP) growth. GDP measures the market value of a country’s final goods and services produced in a specific period.
This reassessment is vital because the nation may technically be in a recession if the GDP is negative for two consecutive quarters. On July 19, the Atlanta Fed reduced its GDP projection to the same level as the first quarter of the year, -1.6%.
Although, according to cryptocurrency skeptic Peter Schiff, the majority of 2022 has already been in recession without experts foreseeing it.
Speaking on the topic, Schiff says:
It’s amazing how so many analysts still don’t have ‘recession’ in their 2022 or even 2023 economic forecasts when likely the economy has spent all of 2022 in recession.
Recessions are unfavorable for high-risk investments like cryptocurrency and tech stocks. The negative news in weeks could significantly dampen the current market mood and terminate the rally in the cryptocurrency market.
Abdulkarim Abdulwahab is a writer who covers breaking events in the crypto and blockchain industry. Aside from writing for CoinQuora, he also helps companies in building their brand via blogs, how-to guides, and more.
CoinQuora is an independent media organization that exists to inform and educate our readers regarding the latest news and updates in the crypto and blockchain industry.
Join over million readers and get the latest posts delivered straight to your inbox.
© Copyright 2022 All rights Reserved | CoinQuora