Famous economist Mohamed El-Erian believes that the future of Bitcoin (BTC) is behind the underlying technology rather than speculation.
Famous economist Mohamed El-Erian announced on CNBC that he bought Bitcoin but unfortunately sold it at $60,000 just before the rally. The former chair of President Obama’s Global Development Council said he bought some Bitcoin when it was trading around $3,000 in the winter of 2018, its lowest point after its first rally in 2017.
Economist held his position until 2020 and sold after Bitcoin reached its previous ATH level and crossed $19,000. Right after El-Erian exited the market, Bitcoin exploded and rally 250%.
According to economists, the two main factors driving the current rally are the use of Bitcoin as a hedge against rising inflation and the launch of multiple futures-based exchange-traded funds. In addition to the crypto market events announced, Bitcoin has gone through a major network upgrade.
Fundamental factors strengthen Bitcoin’s position in the market, while other crypto assets remain highly volatile compared to traditional stocks. Ripple, Ethereum and even Bitcoin lost more than half of their value when China announced its crackdown on the cryptocurrency industry.
Will El-Erian Buy Again?
The analyst said that he will consider entering the market when short-term traders or speculators leave the market, that is, when the “shake out” occurs due to negative price movements.
The economist cares about the fundamentals of Bitcoin and cryptocurrencies in general, and says he believes in the underlying technology that drives Bitcoin’s long-term growth.
While Mohamed remains a cryptocurrency evangelist, he thinks it will not rival the US dollar even in times of extremely high inflation.
