Head of Tesla, SpaceX, Twitter (as of late) and a few other innovative companies, Elon Musk, has taken to Twitter to name an event that will take place next week and which, if it happens they way he expects it, may become another driver for Bitcoin rise 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 50 basis points hike – how will Bitcoin react?
On December 14, another Fed Reserve meeting is taking place, where, per expectations of economists polled by Reuters, another, rate hike is likely to happen, it would be the fifth one this year.
This time, however, they expect the interest rates to be increased by 50 basis points, rather than 75 as it happened during the previous four meetings.
Even though, the rate increase is expected to be smaller, as Fed’s chair Jerome Powell stated at the end of November, economists still expect a recession to break out in 2023.
Each time during the previous rate hikes by 75 basis points this year, the flagship cryptocurrency plunged.
Bitcoin rose on the news of possibly lower hikes in November
Still, the rate hike may be lower, and so chances are also high that this would be positive for Bitcoin price on the contrast with the previous hikes.
When Jerome Powell announced that in December the Fed may begin decreasing its rate hikes, the leading crypto responded by reclaiming the $17,000 level for the first time in two weeks, as covered by U.Today.
At the time of this publication, BTC is changing hands at $17,150, still holding above the $17K level.
Still, even if the predictions of a recession next year come true, this may be good for Bitcoin, gold and other risk assets, according to chief commodity strategist at Bloomberg Intelligence Mike McGlone.
It is likely to be bad for the price of Elon Musk’s TSLA, but Musk has recently tweeted that his companies are ready for 2023, which he expects to be a hard year for the economy.