Elon Musk, CEO of Tesla, SpaceX, Twitter (as of late), and a few other innovative companies, has taken to Twitter to announce an event that will take place next week and, if it goes as planned, may become another driver for Bitcoin’s rise or fall.
Another Fed Reserve meeting is scheduled for December 14, at which, according to economists polled by Reuters, another rate hike, the fifth this year, is expected.
They anticipate that interest rates will be raised by 50 basis points this time, rather than 75 as in the previous four meetings.
Despite the fact that the rate hike is expected to be smaller, as Fed Chair Jerome Powell stated at the end of November, economists still expect a recession in 2023.
Nonetheless, the rate hike may be lower, and thus the chances are high that this would be positive for Bitcoin price in comparison to previous hikes.
When Fed Chairman Jerome Powell announced that the Fed may begin reducing rate hikes in December, the leading cryptocurrency reclaimed the $17,000 level for the first time in two weeks, as reported by U.Today.
At the time of publication, BTC was trading at $17,150, remaining above the $17,000 mark. Even if the predictions for a recession next year come true, this may be good for Bitcoin, gold, and other risk assets, according to Bloomberg Intelligence’s chief commodity strategist Mike McGlone. It is likely to be negative for Elon Musk’s TSLA price, but Musk recently tweeted that his companies are prepared for 2023, which he expects to be a difficult year for the economy.
