In a recent tweet, Elon Musk speaks about a thing that could make Bitcoin price reverse
Elon Musk, the head of Tesla, SpaceX, Twitter (most recently) and a few other innovative companies, has taken to Twitter to name an event happening next week and what they can expect if it happens. Be another driver for bitcoin to rise or push it down.
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.
However, this time they expect interest rates to be hiked by 50 basis points instead of 75 as happened during the last 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.
Every time during the previous rate hike of 75 basis points this year, the leading cryptocurrency fell.
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 the Fed may start tapering off its rate hikes in December, the leading crypto responded by reclaiming the $17,000 level for the first time in two weeks, as covered by U.Today was.
At the time of this publication, BTC is changing hands at $17,150, still holding above the $17K level.
According to Mike McGlone, chief commodities strategist at Bloomberg Intelligence, even if predictions of a recession next year come true, it could bode well for bitcoin, gold and other risk-on assets.
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.
