Bitcoin and Ethereum are pumping after the U.S. Bureau of Economic Analysis released its official GDP data for Q2 2022. The data shows that real GDP decreased by 0.9% year over year, marking the nation’s second consecutive quarter of negative GDP growth.
Bitcoin traded for about $22,700 prior to the bureau’s release at 08:30 EST. Meanwhile, Ethereum traded for about $1,630.
Both coins then began to climb over the following hours, with Bitcoin reaching back to $21,114 at about 11:53, and Ethereum hitting $1,754 at the same time. Each has since pulled back to $23,800 and $1,720 respectively, at writing time.
Ethereum’s rise is compiled with newfound enthusiasm over its upcoming Merge upgrade, which will take its consensus mechanism from proof of work to proof of stake.
The pump follows a fairly bullish reaction to the Federal Reserve’s 75 basis point rate hike on Wednesday – which has normally been viewed as bearish for crypto and stocks.
By many countries’ definitions and common measurements, two consecutive quarters of negative GDP means a nation has technically entered recession. However, the White House denies that the U.S. economy has entered such a state, claiming that recessions are determined by a more “holistic look at the data.”
When asked at a press conference on Wednesday, Federal Reserve Chairman Jerome Powell stated that he did not believe the economy was in a recession. However, he claimed that it is “softening.”