The quarter two gdp report was released this morning and it's official the us us economy has entered a recession currently in a recession. We're in a recession recession recession so in today's video. We'll be reviewing everything you need to know about quarter two's declining economic growth. We'll also cover yesterday's fomc press conference.

And what another 75 basis point rate hike will mean for you now if you guys are hating. These daily market updates be sure to like this video down below subscribe if you haven't done so already and let's talk about what's happening in this market. All right so first things first yes. The us economy was reported to decline for the second consecutive quarter from april to june.

And officially this means that we have a recession. Despite. What any politician may say now the gdp report returned negative. One point six percent in quarter.

One and negative point nine percent at an annualized pace for quarter two now before moving on let's discuss the definition of what a gdp is because i feel like some people don't really understand that gdp stands for gross. A domestic product and this is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific period of time. So. When you're calculating a country's gdp.

This encompasses not just public. But also private companies. The government outlays investments with addition to even. Private inventories and paid in construction costs so to break that down even more further just think about a gdp as a comprehensive report card of a given country's economic health.

And also the estimate of how much the economy will grow. So why should you even care about gdps. Why should you care about a recession. If you study any of the past recession patterns and outcomes.

You'll notice that during times of an official recession. You'll have business bankruptcies. You'll have high interest rates you'll have mass layoffs and even a significant decline in asset prices. Now.

Although a lot of that does sound bad recessions are an excellent time for you to position yourself. In a way to come out better than ever before while most individuals are still struggling in recessions. If you're prepared if you're educated you can still use this time to profit during an economic decline now the midterms coming up in the next few months. The current administration right now may come out with some news saying that okay we gotta change.

The definition of what a recession is and we're not gonna be talking about the gdp there are other factors on why this economy is not in that recession. But i also want to stress anytime. Many people get fooled by whatever some individual might say. This is usually where people get unprepared you may get caught on the back of your foot.

And i just want to say if you take a look at the data. See the metrics that we're currently in right now regardless of the reports that you hear it's always best to prepare for the worst during these times. Now while i do agree we may not be seeing the full symptoms of a full blown recession right now you have to keep in mind all recessions have looked different historically before in the past sometimes jobs are down. Sometimes jobs are down significant sometimes they're not down that much even during this cycle.

I believe we could be very very early in and if the economy continues its current direction. I do think we may see some of those symptoms still coming up think of it this way if you ever get sick with a cold or you know whatever kombucha virus is coming up next. The donkey pox you may be able to test positive for that specific disease. But there are some people who get infected.

But never show the symptoms. Some people just react differently some recessions happen in a different manner and you have to keep in mind whatever. The white house tries to do during this time. And even trying to change.

The webster dictionary. Not all of that may be taken with the truth. Almost says just be careful during these times. Know that things are not looking good for the economy.

We had so much stimulus getting printed and we're seeing other countries right now going through very similar circumstances keep in mind that yesterday. The federal reserve held its fomc press conference for july and they talked about enacting its second. Consecutive. 075 percentage point increase taking its benchmark rate to a range of.

225 percent to 25. So back in june not everyone in the fomc. Liked the 75 basis point hike. But this most recent hike was voted unanimously so the hike here wasn't an entire percentage point like many people were speculating.

But powell was asked if the federal government would consider a 100 point basis hike for july and he said. It wasn't. But that the federal government will continue to do whatever they need to in order to make sure that inflation can slow down. So.

What that means is if inflation doesn't slow down. If gas prices continue to go up food goes up all the other costs go up. Then 100 basis point hike is still on the table. Now the next fomc meeting isn't going to be until september.

So we have some breathing room to see what's going to happen in august. So the interest rates look like it's going to remain the same over the next month. But the question is how long can this last war. And what will the markets do in between that time now historically speaking based on previous data.

Until the early 2000s interest rates. Didn't drop below the 5 marks us right now things are still going up. It's still not as bad as we've seen it before in the past also back in the 80s inflation when it was at its double digits. We even saw interest rates at that point getting as high as 20.

Percent so as. Mentioned earlier the us currently has the benchmark rate at. 225 to 25. So we can definitely see this number increase significantly.

So please be prepared because anytime. We see interest rates continuing to go up. Usually the markets don't respond well now. In this case.

Things have been pretty interesting because yesterday immediately following the 75 basis point hike instead of the markets. Reacting poorly. We actually saw it shooting up immensely. So if you take a look at your screen.

You're going to notice that huge green candle. And this was right at the time. The announcement was made yesterday now the increase in price also means that the 75 basis point hike was already priced into the markets. And investors were relieved to hear that a full percentage point.

Increase didn't happen even though crypto did pretty well the us. Financial markets. Didn't react as positively to the entire gdp report. So the dow jones went down the s.

P. 500 went down the nasdaq also went down about 16. Truth be told though. I'm glad that the markets didn't take even more and hopefully throughout this drop.

We're gonna be able to see a bit of recovery happening in the stock market and then leading into even further growth happening within the crypto scene as well taking a deeper look into. Bitcoin we're seeing this asset up about 66. In the past 24 hours last night. My phone was going off with notifications that bitcoin was trading up higher and since then on the four hour charts.

We've actually been seeing the rsi closing in to now overbought levels currently at the 60 mark. So bitcoin shooting up yesterday afternoon. Breaking past the 22 500. Mark.

Once a rate hike. Number was announced this means that we may most likely see a retest of that support level today or either sometime this week. If the prices do hold then we could eventually see bitcoin maybe even moving past further the 24 000. Mark.

Now here on your screen. You're going to see the 30 minute chart to see how bitcoin reacted to the gdp numbers and the candlestick like i said. It was increasingly massive and the volatile was just all over the. Roof.

So the report yesterday was. Released at 8. 30 am eastern time and here on your screen. You'll notice that arrow underneath.

The candlestick during the release. Now this candlestick. Here is called a doji candlestick and they're all about indecisiveness within the market. The candle ended up closing at the same price.

It opened and had a range of 700 in 30 minutes. So when we talk about volatility. It's not just the asset going up or down. It's a lot of movement that can happen between a short period of time with that being said the global crypto market cap is now sitting at 110.

Trillion dollars or a 10 increase over the last day. So an incredible rally since all of that news bitcoin right under 24 000. We're seeing that increase in the market. It's going up a bit even more and the big winner to note is gonna be ethereum.

So ethereum is now at seventeen hundred dollars. The rally for this asset is now over a hundred percent since we saw it dip down below to the eight to nine hundred dollar mark depending on which exchange you looked at and it looks like ethereum is continuing to have its stride on top of that we are still seeing some other all coins within the market. Ripping. So lida is up 50 ethereum classic is now up 40 synthetics is up 41.

And even in the last seven days. You'll notice that we are having a bit of green. All over the market now even amidst the spare times. Where the indexes aren't reacting too well we're still able to see certain all coins.

Certain cryptocurrencies saying you know what screw what's going on in the macroeconomic conditions and moving upwards. Now on a day like this going into the crypto fear and grade index we're seeing 32 or fear on the scale. But i do think we're gonna return back to neutral levels. If we're able to break that 24 000.

Level for bitcoin soon now two quick pieces of news to mention. Before wrapping up today's update in yesterday's earning. Report meta disclosed that its metaverse specific division for facebook lost roughly 28. Billion dollars for quarter two so that brings their metaverse division to a year to date loss of 577.

Billion dollars. The metaverse is something i personally believe in i do think it's gonna happen i think in this lifetime. We're gonna see the metaverse expand but right now during this bear market it looks like many people don't want anything to do with it facebook is putting crazy amounts of money into it and they're exceeding this huge loss that many people didn't expect for it to happen. So mark zuckerberg through this time looks.

Like he's playing the long term game. As he mentioned in the quarter. One report he stated i feel even more strongly now that developing these platforms will unlock hundreds of billions of dollars if not trillions over time now as long as facebook also known as meta still has its other platforms to keep revenue coming in and keep the company afloat then i do believe mark zuckerberg is just rallying up these expenses probably less of a tax bill for this year. And i do think at some point this will pay off but only time will tell what's gonna happen.

Within the metaverse now on top of that according to a tweet from the president of ftx. They went ahead and opened finally their stock trading to users in all 50 american states. So as you guys know ftx is a partner that i worked with a lot earlier this year. And we also mentioned before in the past about their ability to bring stock trading to their platform.

And it looks like finally. It's underway. I think here this is a massive move from ftx. It can definitely bring in new investors into the space.

And it can definitely migrate anyone who comes from stocks very easily into crypto especially if your accounts are all connected onto one exchange now during this time. I do think we should be able to see a bit of excitement happening this year. I'm already seeing a bit of an increase in people's sentiment happening within the markets and when people are able to just see a little bit of green people are able to hear a little bit of money being made from their friends. That's usually when we get a first sign of either a relief rally.

Happening or maybe even an early end to the bear market now realistically though the bear market. I do think would last anywhere from six to 12 months even at this time. But that doesn't mean that you cannot make money through this keep your chin up keep moving forward keep staying. Educated.

And we're gonna get through this together. Now. If you guys did enjoy. Today's market update be sure to check out the links down.

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If you guys made it till the end follow me on twitter and on instagram. If you haven't done. So already and like always i'll see y'all. Soon peace.