Michael Saylor, chairman at MicroStrategy, has suggested to Mohamed El-Erian, chief economic adviser at Allianz, to invest in Bitcoin.
El-Erian's Economic Commentary
During a recent appearance on CNBC, former PIMCO boss Mohamed El-Erian noted that the recent economic data was 'somewhat stronger' and 'hotter' than anticipated. He described this as a 'consistent theme.' The economist criticized the Fed for being overly data-dependent. He also stated that the Fed might tolerate inflation in the 2.5%-3% range, slightly above the typical 2% target.
MicroStrategy's Stance and Bitcoin Purchase
Michael Saylor of MicroStrategy, a business intelligence firm, continues to advocate for investment in Bitcoin. The company recently announced its tenth consecutive cryptocurrency purchase, bringing its total holdings to 450,000 Bitcoins. Saylor asserts that Bitcoin serves as a reliable hedge against inflation due to its scarcity.
Historical Perspective: El-Erian and Bitcoin
Back in 2021, Mohamed El-Erian revealed that he bought Bitcoin in 2018 during a market crash but ended up selling the cryptocurrency too early. In 2022, he predicted that Bitcoin would not reach the $200,000 level. The cryptocurrency is now approaching the $100,000 mark after recently dipping below $90,000 due to the Federal Reserve's hawkish policies.
The discussion over economic policies and Bitcoin's future continues to draw attention from both investors and economists. Time will tell how the Fed and other institutions' policies will impact the crypto market.
