Advertisement
AD

Main navigation

Crypto Will Go Higher Should Fed Raise Inflation Target: Top Economist

Advertisement
Mon, 18/04/2022 - 13:43
Crypto Will Go Higher Should Fed Raise Inflation Target: Top Economist
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News
Contents
Advertisement

While making an appearance during today's CNBC Squawk Box show, economist and businessman, economic advisor at Allianz, Mohamed A. El-Erian, named a reason under which the price of crypto is likely to go higher than its current levels.

If Fed changes its inflation target

The economist believes that the Fed may be pushed to change the inflation target from 2-3% since they are likely to realize that to achieve the initially announced target of 2% is impossible and failing to so would undermine their credibility.

In this case, El-Erian believes that crypto and gold will go higher. When they discuss crypto on CNBC, they mostly talk about Bitcoin and less often about Ethereum. And since financial institutions believe BTC to be an inflation hedge, in this case the talk was likely about Bitcoin.

The author of the bestselling book on financial literacy, "Rich Dad, Poor Dad" Robert Kiyosaki, who has been a long term investor in real estate and recently turned to Bitcoin, silver and gold, also tweeted earlier today that Bitcoin, along with XAU and XAG, are good buys now due to the current economic situation.

He reckons that bonds are the riskiest investment at the moment.

Related
Elon Musk Wishes DOGE Army Happy Easter with Floki Picture and "DOGE Eggs"

Bitcoin followed stocks down the hill: Peter Schiff

Long-term Bitcoin critic and chairman on SchiffGold, Peter Schiff, has taken to Twitter to take a jab at Bitcoin as the price fell below $39,000 earlier today. That was an 80-day low for BTC.

He tweeted that BTC was holding above that level throughout the weekend; however, when equities and gold trading resumed on Monday, Bitcoin fell to a low of $38,500, following tech stocks.

Gold at the moment is trading at $1,990, rising by $15. Schiff added that by falling down, Bitcoin has "maintained its inverse correlation with gold."

The Bitcoin price dived below $39,000, following the massive selloff on the market. The selling pressure on the main crypto hardened up as the Fed has been tightening its policy in order to handle inflation.

As it happened, liquidations across exchanges reached a whopping $200 million. Ninety-five percent of those were longs.

By now, the Bitcoin price has shown a recovery to $39,371 on the Bitstamp exchange.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD