Elon Musk, Cathie Wood sound 'deflation' alarm — is Bitcoin at risk of falling below $14K?

Elon Musk, Cathie Wood sound ‘deflation’ alarm — is Bitcoin at risk of falling below $14K?


Bitcoin (BTC) has rebounded by 20% to almost $22,500 since Sep. 7. But bull trap risks are abound in the long run as Elon Musk and Cathie Wood sound an alarm over a potential deflation crisis.

Cathie Wood: “Deflation in the pipeline”

The Tesla CEO tweeted over the weekend that a major Federal Reserve interest rate hike could increase the possibility of deflation. In other words, Musk suggests that the demand for goods and services will fall in the United States against rising unemployment.

A major Fed rate hike risks deflation

Trending: Banks Already Restricting Cash Withdrawals In USA?

— Elon Musk (@elonmusk) September 9, 2022

Rate hikes have been typically bad for Bitcoin this year. In context, the period of the Fed raising its benchmark rates from near zero in March 2022 to 2.25%-2.50% in August 2022 has coincided with BTC

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