The Chief Economist of Allianz, explained that the rise of Bitcoin and gold is dependent on a step taken by the FED.
The leading cryptocurrency Bitcoin continues to exhibit volatile movements as of today. Acting in correlation with the global markets, BTC is heavily affected by the sales in the US stock markets. Mohamed El-Erian, who has been on the agenda of the crypto market with his statements, made new statements.
Allianz’s chief economic adviser, El-Erian, was a guest of CNBC’s Squawk Box, one of the world’s largest media channels. Speaking about the new policy of the FED and Bitcoin in this program, Mohammed believes that Bitcoin will move upwards in the future.
Noting that it is impossible for the FED to reach the inflation target of 2%, which was announced in the previous period, the famous economist says that this target will be updated to 3%.
Believing that inflation increases in the world will cause Bitcoin and gold to move upwards, El-Erian believes that it is too late for the FED to start tightening in monetary policy. Mohamed El-Erian, chief economic adviser of Allianz, made the following statements on the subject:
“The Fed was supposed to start tightening its monetary policy last year. In this context, it was late in the fight against inflation. However, the Fed will have to change the inflation target. Because he knows that if the FED fails to meet the 2% target, he will lose confidence. That’s why if the Fed’s inflation target rises from 2% to 3%, both gold and cryptocurrencies will rise.”
Noting that the Fed should start tightening its monetary policy last year, the famous economist states that it is late in the fight against inflation. Saying that the FED will increase the inflation target, Mohammed believes that Bitcoin and gold will rise sharply.
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