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The cryptocurrency market jumped on Thursday following news that the US economy shrank for the second straight quarter.
Bitcoin is trending upwards, currently trading at around $23,703. In the last 24 hours, the largest cryptocurrency by market value popped over 10%, according to CoinGecko, reacting positively after the US Federal Reserve raised interest rates on Wednesday. Ethereum is also in the green, up 16% in the same timeframe. Ether (ETH) is currently trading at around $1,725.
Altcoins, or cryptocurrencies aside from Bitcoin, also jumped higher on the news. Cardano’s ADA, Solana’s SOL, and Polkadot’s DOT, for example, are up 9%, 13%, and 15% respectively over the last day.
“This is giving markets a bit of cushion after the short-lived ETH merge rally lost steam,” Michael Safai, Dexterity Capital founder and managing partner, told Fortune in an email. “While it was promising to see that crypto markets regain some of their own independent price action, global macro is still going to lead the way for some time.”
Gross domestic product (GDP) fell at an adjusted annual rate of 0.9% from April to June, the Commerce Department said on Thursday, fueling further fears of recession.
Trading will “continue to be range-bound, perhaps at a slightly higher range,” Safai predicts. “Crypto is still going to be vulnerable to any sudden shifts in the macroeconomic and geopolitical landscape, which could lead to some downward moves well before the next Fed meeting.”
The overall market is also moving higher despite macroeconomic factors.
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