- Elon Musk tweeted on December 9, highlighting his concerns about an incoming recession.
- Another hike in interest rate from the US Federal Reserve could kick-start a recession.
- Musk’s favorite crypto, Dogecoin seems to be stuck trading in a range and does not show any signs of a breakout.
Tesla CEO Elon Musk tweeted on Friday voicing his concerns about recession. He mentioned that the United States Federal Reserve could catalyze a recession if it raises interest rates in the next week.
Elon Musk and recession concerns
Elon Musk took to Twitter, his newly acquired company, to warn his followers that a recession is likely under one condition. He added that if the Fed continues to hike the interest rates, they could risk a recession.
If the Fed raises rates again next week, the recession will be greatly amplified
— Elon Musk (@elonmusk) December 9, 2022
The US Federal Reserve has raised interest rates from 0% in early 2022 to roughly 4% as of December 9. The Fed will need to make a decision on the next rate hike on December 13, which is what Musk is referring to in his tweet.
The current consensus is that the Fed will stick to a 50 basis point hike, but if the actual rate exceeds forecast and comes in at 75 bps, it would be strong for the US dollar and bad for the markets.
Musk further adds that if recession is triggered it could extend up to the second quarter of 2024.
Dogecoin price and Elon Musk
Elon Musk is well-known for being the Tesla CEO but in the crypto community he is the self-proclaimed “dogefather.” He is an avid supporter of Dogecoin, which is a dog-themed cryptocurrency.
Dogecoin price currently auctions at $0.096 and is stuck trading between $0.0813 support level and $0.112 resistance barrier. As long as DOGE hovers between these two trend lines, things will remain boring.
However, if Musk were to tweet about Dogecoin, it could induce volatility, triggering the altcoin to attempt a breakout above the $0.112. If successful, DOGE could retest the $0.163 hurdle.
DOGE/USDT 1-day chart
However, a breakdown of the $0.0813 support level could cause Dogecoin price to revisit the $0.0700 foothold.