Mohamed Ali El-Erian, chief economic adviser to Allianz asset manager, suggested what changes in the Fed’s policy will lead to an increase in the price of bitcoin.
What happens to #crypto & #gold if the Fed is tempted to raise their inflation target from 2% to 3%?
“They both go higher,” says @elerianm pic.twitter.com/QNPzFu8NnP
— Squawk Box (@SquawkCNBC) April 18, 2022
The expert predicts that the Fed may change the annual inflation target from 2% to 3%. He considers it unlikely that the initial figure will be reached, and failure to do so will undermine the credibility of monetary policy.
In the event of such a decision by the regulator, the prices for gold and cryptocurrency will rise, the economist believes.
Rich Dad Poor Dad bestselling author and entrepreneur Robert Kiyosaki reiterated his call to invest in bitcoin and precious metals as “insurance against the idiots who rule the world.”
Q: What is RISKIEST INVESTMENT in GLOBAL meltdown? Stocks or bonds? A: Bonds. Tragically rookie investors follow rookie advice of 60 (stocks) 40 (bonds) mix. BUY gold silver BC as insurance against morons running the world. REMEMBER: A college degree is not a cure for STUPIDITY.
— therealkiyosaki (@theRealKiyosaki) April 18, 2022
On April 18, the price of the first cryptocurrency updated its local minimum since mid-March at levels below $39,000.
Against this backdrop, cryptocurrency critic and gold proponent Peter Schiff noted that bitcoin is correlated with technology stocks, not safe-haven assets.
#Bitcoin was able to hold above $40K all weekend until equities and #gold resumed trading. Since NASDAQ futures are down over 1% and gold is up $15, trading just under $1,990, Bitcoin naturally followed tech stocks lower and maintained its perfect inverse correlation with gold.
— Peter Schiff (@Peter Schiff) April 18, 2022
Recall that in 2021, El-Erian told how he made money on bitcoin after the crypto winter and admitted that he sold the coins “too early.”
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