Bitcoin remains below $30k, Musk loses billions and an US recession remains possible
Last Updated on 6 November 2023 by CryptoTips.eu
As the month of May approaches, and with it the next meeting of the US Federal Reserve (on May 3, it will announce what it will do about rate hikes), investor nervousness is growing. Because the English inflation turned out to be very high this week, and also due to some disappointing results on the stock markets (especially Tesla), a market revival seemed to be on hold. This also had an effect on the price of Bitcoin, which plunged back below the $30,000 level this week.
25 basis points
News agency Reuters this week queried global economists and asked them what they expect from the Federal Reserve’s upcoming meeting. The consensus says that the Fed will announce a final rate hike of about 25 basis points, or a quarter of one percent.
This is because analysts are still worried about a possible recession in the United States and also because the banking crisis does not seem to be completely over (just look at the problems surrounding Charles Schwab, still a major bank in America).
Also the unexpected news this week that British inflation turned out to be much higher than predicted (10%) made investors hesitate and return to less risky investments. That is, of course, bad news for crypto.
Musk loses billions
Tech also took a hit this week, especially in the person of Tesla, SpaceX and Twitter (and I’m forgetting a few companies here) CEO Elon Musk, who managed to lose the most money in one day. His personal wealth took a 10 billion euro hit in a single day due to weak results from Tesla on the one hand and an exploding spaceship from SpaceX on the other hand.
As a result, Dogecoin’s most famous fan once again became number two on the list of richest people in the world, after Bernard Arnault of LVMH.
The latter made the news this week when it turned out that, just like the fictional Rogan Loy from Succession, he seems unable to choose which of his children to designate as successor.
And if Tesla falls 10% and SpaceX has an accident, that of course has an impact on tech exchange Nasdaq. Due to the high correlation of that exchange with crypto (both are seen as riskier investments), the price of Bitcoin was therefore also pushed down. At the time of writing, the largest digital coin is trading for $27,600.
SectoR_2010 / Depositphotos.com
