Musk predicts a relatively mild crisis, although he has highlighted that macroeconomic forecasting is a recipe for disaster. The CEO of Tesla said Tesla receives much information about prices, as they must handle products and supplies to produce its cars.

Elon Musk recently said he was optimistic about the future of the US economy. During a meeting with Tesla shareholders, the billionaire entrepreneur talked about the difficulties the North American country is experiencing.

The US Federal Reserve (Fed) has chosen to raise interest rates to fight the highest inflation seen in forty years. Besides the Russia-Ukraine conflict and the tensions with China, that situation has affected many industries, including the crypto market.

Despite Warning about Severe Crisis, Musk Is Optimistic about the Future

Musk has already warned that a period of severe crisis might cause several bankruptcies until late 2023. However, the wealthiest man thinks the scenario is not as pessimistic as many imagine.

Despite highlighting that macroeconomic forecasting is a recipe for disaster, he predicts a relatively mild crisis. He said the relatively low debt of companies might lead to a mild to moderate recession for around 18 months.

Musk Expects the Trend of Falling Prices to Continue

The CEO of Tesla commented that they are optimistic about where prices will go over time. That is because the electric car company must handle various products and supplies from different countries to do its activities.

Musk said they receive much information about where prices will go over time. The executive explained that they bought the products many months before, as they must produce millions of cars.

Since it is a long supply chain with much inertia, they know ​​where prices might head over time. The executive stated that they predict the value of most basic products going into Tesla will drop in six months.

He explained that they expect the price of raw materials to continue dropping for the next six months. Therefore, he predicts that inflation will come down in the short term.

Many analysts consider it is crucial to improve the economic scenario for cryptocurrencies to re-enter a bullish cycle and reach new highs.

The Price of DOGE Might Rise Significantly in the Short Term

Dogecoin (DOGE), the favorite cryptocurrency of Elon Musk, looks bullish and might reach a significant level within the next 48 hours. Since the price is around the consolidation area, it might break out of hoarding and attempt to remove a zero.

DOGE trades inside an ascending triangle while it forms consistently higher highs and lows. The recent rejection caused the price to drop to lower support. A bounce might drive it toward the resistance zone between USD 0.074 and USD 0.076.

The price must test and break out of this zone to establish a significant bullish path.

Dogecoin is trading at around USD 0.068714 and has accumulated a 2.7% over the last week. While its daily trading volume is above USD 491.46 million, its market capitalization is about USD 9.12 billion, according to CoinGecko.

By Alexander Salazar

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