Economist Allianz Named A Potential Trigger For The Growth Of Bitcoin

Mohamed Ali El-Erian, chief economic adviser to wealth manager Allianz, suggested what changes in Fed 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.

Bestselling author of Rich Dad Poor Dad and entrepreneur Robert Kiyosaki repeated 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

April 18, the price of the first cryptocurrency updated local minimum since mid-March at levels below $39,000.

Also See: Low Supply Cryptocurrency 2022, Huge Opportunity For Investors

Against this backdrop, cryptocurrency critic and gold advocate Peter Schiff noted that bitcoin correlates 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 (@PeterSchiff) April 18, 2022

Recall that in 2021, El-Erian told how made money on bitcoin after the crypto winter and admitted that he sold the coins “too early”.