Bitcoin Sees Another Threat? – Elon Musk may well be hinting at this

[ad_1]

Youri Molchan

In a recent tweet, Elon Musk talks about one thing that could push the price of Bitcoin down

Contents

Economists Expect 50bp Rise, How Will Bitcoin React? Bitcoin Surged on News of Possibly Lower Rises in November

The head of Tesla, SpaceX, Twitter (recently) and a few other innovative companies, Elon Musk, took to Twitter to name an event happening next week that, if it happens as he expects, could become another driver for Bitcoin to go up or push it down.

If the Fed raises rates again next week, the recession will be greatly amplified

Elon Musk (@elonmusk) December 9, 2022 Economists Expect 50bp Rise, How Will Bitcoin React?

On December 14, another meeting of the Fed Reserve takes place, where according to the expectations of economists polled by Reuters, another rate hike is likely to occur, it would be the fifth this year.

This time, however, they expect interest rates to be raised by 50 basis points, instead of 75 as happened in the previous four meetings.

Even though the rate hike is expected to be lower, as Fed Chairman Jerome Powell said in late November, economists still expect a recession to hit in 2023.

Each time during the previous 75 basis point rate hikes this year, the flagship cryptocurrency has plunged.

Bitcoin Surged on News of Possibly Lower Rises in November

Still, the rate hike may be smaller, and so there is a good chance that this will be positive for the price of Bitcoin compared to previous rises.

When Jerome Powell announced that in December the Fed might start tapering its rate hikes, the crypto major responded by reclaiming the $17,000 level for the first time in two weeks, as covered by U.Today.

As of press time, BTC is changing hands at $17,150, still holding above the $17,000 level.

Still, even if predictions of a recession next year come true, it could be good for Bitcoin, gold and other risky assets, according to chief commodities strategist at Bloomberg Intelligence Mike McGlone.

It will likely be bad for Elon Musks TSLA price, but Musk recently tweeted that his companies are ready for 2023, which he expects to be a tough year for the economy.

[ad_2]