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 cut-off of 10% would entail at least 100,000 redundancies as the car maker had nearly about 100,000 employees at the end of 2021, the crypto markets were somewhat studied by now where the U.S stock futures and Tesla’s negative economic prediction 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.
Further, the door forecast from the world’s richest man comes amid already ongoing economic strife, whereas the U.S inflation hit over a 40-year high this time, and is further expected to stay elevated for 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 may weaken in response to the recession, whereas the market had already responded very poorly to economic ructions over 2022. As the largest cryptocurrencies, Bitcoin and Ethereum are trading more than 50% below their highs recorded. The loose monetary policy which was driven by 2020 and 2021 has now come to the end.