Yuri Molkhan
In a recent tweet, Elon Musk talks about one thing that could reverse the Bitcoin price
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- Economists Expect 50 Basis Points Up – How Will Bitcoin Respond?
- Bitcoin rose on news of potentially lower rate hikes in November
The leader of Tesla, SpaceX, Twitter (more recently) and several other innovative companies, Elon Musk, has taken to Twitter to announce an event that will take place next week, if it happens as he expects , could become another driver of Bitcoin’s surge or push it lower.
If the Fed hikes rates again next week, the recession will be significantly deepened
— Elon Musk (@elonmusk) December 9, 2022
Economists Expect 50 Basis Points Up – How Will Bitcoin Respond?
Another Fed Reserves meeting is scheduled for December 14, which is likely to see another rate hike, the fifth this year, according to expectations by economists polled by Reuters.
This time, however, they expect a rate hike of 50 basis points instead of the 75 basis points seen in the previous four meetings.
Even if the rise in interest rates is likely to be lower, as Fed Chair Jerome Powell announced at the end of November, economists still expect a recession to break out in 2023.
Every time during the previous 75 basis point rate hikes this year, the flagship cryptocurrency has crashed.
Bitcoin rose on news of potentially lower rate hikes in November
Still, the rate hike could be lower, and therefore the chances are also high that this would be positive for the bitcoin price in contrast to the previous hikes.
When Jerome Powell announced that the Fed could start scaling rate hikes in December, the leading crypto reacted by reclaiming $17,000 for the first time in two weeks, as reported by U.Today.
At the time of this writing, BTC is changing hands at $17,150 and is still holding above the $17,000 level.
But even if predictions of a recession next year come true, it could be good for Bitcoin, gold, and other risky assets, according to Mike McGlone, chief commodity strategist at Bloomberg Intelligence.
Things are set to be bad for the price of Elon Musk’s TSLA, but Musk recently tweeted that his companies are poised for 2023, which he expects will be a tough year for the economy.
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