As Bitcoin price battles $23,000, Bitcoin saw another green candle two days in a row on July 28’th 2022 as Wall street opened amid confusion over whether the U.S.A. had entered a new recession.

BTC/USD 1-hour candle chart

Image credit to BTC/USD 1-hour candle chart TradingView

According to data from Cointelegraph Markets and Trading view, BTC/USD price tested the $23,000 price range on July 28 2022, following the F.E.D.’s rate hike the previous day. According to some experts, the BTC pump can be attributed to the announcement of a 75-point basis interest rate hike in the U.S.A., contrary to what most investors expected. Most investors had been preparing for a much worse rate.

Is the U.S. Economy in a recession?

Picture with red arrows pointing down

According to the U.S. G.D.P data, the U.S. G.D.P had fallen for the second quarter in a row. As such, meeting the requirements for a recession in the economy. However, despite this data, the situation was still unclear following comments from the F.E.D. chair Jerome Powell and the White House. Both parties stated that no recession had arrived or was forecasted to occur. 

However, according to experts like Holger Zschaepitz, a German journalist, author and editor, the U.S. Economy had typically entered a recession as the G.D.P. shrunk for a second quarter. 

Michaël van de Poppe, a contributor to Cointelegraph, backed this, stating that although the F.E.D. claims the economy is not in a recession, the numbers from the G.D.P. report paint another picture.

Should traders and investors adjust their investment strategies?

picture with man holding bitcoin

During this period, the U.S. equities opened flat while Bitcoin traded sideways without painting a clear trajectory after it broke the $23,400. Van de Poppe further added that despite the news, traders do not have to change their trading strategies. 

Contrary to Poppe, trader and analyst Gareth Soloway stated in a tweet that there are harder times ahead for investors trading risky assets as a deeper recession is unavoidable following the F.E.D.’s rate hikes. 

On-chain analytics resource platform, Material Indicators also backed Soloway’s remarks by warning that the state of the U.S. economy is set to get worse on a macro scale.

What should cryptocurrency investors expect with Bitcoin price battles?

Over the years, it has been clear that during periods of slow economic growth, crypto assets are not spared. In fact, they are often hit the hardest. When recession fears arise, it’s common for some crypto assets to lose more than three-quarters of their value. However, such times also provide a silver lining to the crypto market. 

Translating the macro mood following the declared “recession,” potential long positions have become clear for BTC and ETH investors. According to CryptoChase, a daily close above the $23,450 mark would potentially see BTC pricing surging to the $26,500 price range. 

On the other hand, ETH surged to $1,676 during the day, remaining above its A.T.H. of $1,530 from 2018 following the hike announcement. 

graph with Bitcoin price battles

Image credit to ETH/USD 1-hour candle chart TradingView

Moreover, according to a detailed altcoin market review, Van de Poppe also believes that altcoins are set for another 100 to 200% run from the price range they are at the moment. As a case in point, the trading experts pointed out that the recent AVAX price surge above the 50-day moving average confirmed increased buying pressure. 

At the same time, Finbold also estimates that VeChain’s native token, V.E.T., might surge as much as 107.66% by the end of August. 

However, despite these insights, every investment and trading move in the crypto space involves risk, and you should conduct your research to ensure you make the trade that fits your trading strategy.