5 Things to Know in Crypto Today: BTC Slides Back Under $24,000 After Posting Multi-week Highs

Key Points

• Cryptocurrencies are consolidating just under multi-week highs on Friday ahead of more US data.
• Bitcoin nearly rallied as high as $24,500 earlier in the session, but has since dropped back under $24,000.
• Data on Thursday confirmed that the US economy was in a technical recession in H1 2022.

Cryptocurrencies Consolidate Near Multi-week Highs

Most major cryptocurrencies hit fresh multi-week highs on Friday, having rallied hard over the past three sessions, though prices have seen a modest intra-day pullback. Bitcoin was last changing hands around $23,750, below earlier session highs closer to $24,500, but still nearly 15% higher versus earlier weekly lows under $21,000. Ethereum was last changing hands just under $1,700, having nearly hit $1,800 on Thursday.

Looking ahead, data on Friday will further inform investor expectations regarding the US economy and Fed policy. US PCE Price Index figures for June will be released and are likely to show that core price pressures remain below their peak hit earlier this year.

Employment Cost Index data for Q2 is likely to show a slight deceleration in the pace of wage gains, which should ease Fed concerns about the tight US labor market’s contribution to current elevated inflation. Meanwhile, Personal Income and Spending growth figures for June will give an update as to the health of the consumer at the end of Q2.

US Enters “Technical” Recession

Data out on Thursday revealed that the US economy shrunk at an annualized pace of 0.9% in Q2, much worse than the 0.5% growth rate that analysts had been expecting. That now marks two consecutive quarters of negative growth, with GDP having contracted 1.6% in Q1, thus meeting the traditional definition of recession. Crypto was boosted in wake of Thursday’s weak US GDP data as a result of investors scaling back their Fed tightening bets.

US Not in a Recession, Argues US Treasury Secretary Yellen

The US economy was not in recession in the first half of 2022, despite two consecutive quarterly declines in US GDP, US Treasury Secretary Janet Yellen argued in a press conference on Thursday.

Yellen said the real definition of a recession is a “broad-based weakening of the economy”, which is “not what we are seeing right now”. Yellen cited the fact that the labor market continued to improve in H1 2022 as evidence that the US economy had not fallen into recession. Yellen said that the labor market remains “exceptionally strong”.

Cardano’s Vasil Hard Fork Delayed Again

In a YouTube update released on Thursday, Cardano’s developer Input Output Global (IOG) said that the blockchain’s Vasil hard fork upgrade has been delayed once again. IOG’s technical manager Kevin Hammond explained that the delay is so that exchanges and API developers are “ready”, while IOG has also been focused on fixing a few testnet issues. “There could be a few more weeks before we go to the actual Vasil hard fork… All the users must be ready to progress through the hard fork to ensure a smooth process,” Hammond said.

Recall that the Vasil hard fork was initially scheduled to go ahead in late-June, but was delayed, resulting in downside in ADA’s price at the time. Analysts think a successful upgrade could be a big potential bullish driver for ADA in the months ahead.

This seems to be the view of users of the popular cryptocurrency intel website CoinMarketCap. According to the website’s “Price Estimate” feature that allows users to submit their views on where a cryptocurrency will be trading at some specified time in the future, Cardano is seen rallying between now and the end of August.

Out of 14,222 votes cast, the average forecast is for ADA to reach $0.73 per token, over 55% higher than current levels, by the end of August. The median forecast was for a rise to $0.6488, a near 38% gain from current levels.

US Legislation Creates New Blockchain Advisory Role Within Government

Bipartisan legislation to boost US chip manufacturing that cleared both chambers of the US Congress on Thursday will also create a new role for a blockchain and cryptocurrency advisor within the government. The new advisor will work within the Office of Science and Technology Policy. Earlier this year, US President Joe Biden issued an executive order to the Office of Science and Technology Policy to assess the impact that digital assets and crypto are having on climate change. A report is expected later this year.