Tesla CEO Elon Musk, pointing to a negative trend of the crypto market, said that the crypto market may face even more economic troubles in the coming months. He said that he has a “super bad feeling about the economy” in an internal email sent to the executives, he also plans to cut Tesla’s workforce by 10%.
The 10% cut would result in at least 100,000 layoffs as the automaker had nearly 100,000 employees at the end of 2021, crypto markets were somewhat studied now where US stock futures and negative economic prediction of Tesla would trouble the crypto markets.
Musk in the previous year had said that he expects a recession by spring-summer of 2022, adding to this he said the recession may not be as bad as initially perceived, chiding the loose monetary policy seen over the past two years.
Additionally, the door forecast for the world’s richest man comes amid economic strife already underway, as US inflation this time hit a 40-year high and is further expected to remain high in the medium term. .
According to the recent data the U.S economy had contracted in the first quarter, and the crypto market may experience its first major recession in response to this.
Crypto prices could weaken in response to the recession, as the market already reacted very badly to the economic turmoil in 2022. As the biggest cryptocurrencies, Bitcoin and Ethereum are trading over 50% in below their recorded highs. The accommodative monetary policy that was conducted in 2020 and 2021 has now come to an end.
