Before the Fed officially announced a 0.75% rate hike, the crypto community responded to this news as FUD for the crypto market.
In fact, this announcement actually made the crypto market rise again by recording a markup above $1 trillion.
In fact, negative reports related to the Gross Domestic Product (GDP) of the United States (USA) officially made the US experience a technical recession which further strengthened the rally of Bitcoin cs.
So, is the US recession having a positive impact on the crypto market?
With US GDP growth already negative for the second time in a row, the chairman of The FED, Jerome Powell confirmed further rate hikes will slow, but the economic recovery will also slow.
As is well known, aggressive interest rate hikes make riskier assets, such as stocks and crypto less attractive.
As a result, Powell's statement increased the market's enthusiasm to get back into crypto amidst the news of the US recession.
Head of investment at Arca Funds Jeff Dorman said the recession had little effect on Bitcoin.
According to him, currently Bitcoin is not only trusted as a "store of value" but also a "store of excess value".
Thus, Bitcoin will be used as an actual currency in the face of declining confidence in fiat.
As a result, a recession could theoretically increase the likelihood of investors seeking alternatives to government fiat.
Despite the poor macroeconomic conditions, several popular alcoins are seen continuing to develop their projects.
This condition is also suspected to have contributed to the positive trend of the crypto market in the midst of the US recession.
Ethereum margin is one of the important factors in the rally in altcoins. Fundstrat chief technical strategist Mark newton said Ethereum is still oversold if it goes below $2000.
As for the closer ETH to the target, it will encourage more buying.
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