Economist and businessman Mohamed A. El-Erian highlighted a reason for the expected rise in crypto prices due to Fed’s probable inflation target change. He was having a discussion on crypto during a recent interview on CNBC.
Crypto to rise due to the inflation target change
According to the economist, the Fed may be pressured to modify the inflation objective from 2% to 3%. The pressure may be due to difficulties arriving at achieving its set inflation target of 2% and failing to do so would jeopardise its credibility. In that scenario, cryptocurrency and gold will rise in value.
In the interview discussion, they largely talked about Bitcoin and Ethereum. Also, as financial organisations generally consider Bitcoin as an inflation hedge, they mostly talk about Bitcoin.
BTC is an attractive buy: “Rich Dad, Poor Dad” author
Robert Kiyosaki, the author of the blockbuster book “Rich Dad, Poor Dad,” has recently switched to Bitcoin, silver, and gold for investment. He has been a long-term real estate investor. He tweeted that Bitcoin, as well as XAU and XAG, are attractive buys currently owing to the present economic condition. Bonds are the riskiest investment right now.
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
Bitcoin’s negative link with Gold
Peter Schiff, a long-time Bitcoin sceptic and chairman of SchiffGold, tweeted today to criticise Bitcoin as it came down to $39,000. BTC was at an 80-day low at the time. He tweeted that BTC remained above that level throughout the weekend. However, when equities and gold trade resumed on Monday, BTC dropped to a low of $38,500.
#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
Since the Gold price has been increasing at the time of declining Bitcoin price, it showed its negative link with gold.
