Michael Saylor, executive chairman at business intelligence firm MicroStrategy, recently urged Mohamed El-Erian, the chief economic adviser of Allianz, to buy Bitcoin.
During his recent appearance on CNBC, the former PIMCO boss stated that the recent economic data was "somewhat stronger" and "somewhat hotter" than initially anticipated. This has been a "consistent theme," according to El-Erian.
The economist took aim at the Fed for being too dependent on the data.
He also added that the Fed might be fine with inflation staying in the 2.5%-3% range, which is slightly above the oft-repeated 2% target.
"Inflation expectations are stable. We don't have an inflation problem. We have an inflation issue relative to a 2% target," he said.
He has warned that the Fed might actually hike rates if it is determined to reach the 2% target, which is not a preferable scenario.
Bitcoin, on the other hand, has long been touted as a hedge against inflation due to its inherent scarcity.
MicroStrategy recently announced its tenth consecutive Bitcoin purchase, bringing its total Bitcoin holdings to the 450,000 milestone.
Back in 2021, El-Erian revealed that he purchased Bitcoin back in 2018 during a major market crash. However, he then ended up selling the cryptocurrency too early.
In 2022, he predicted that Bitcoin would not be able to hit $200,000.
The cryptocurrency is currently approaching the $100,000 level after recently dipping below $90,000 due to the Federal Reserve's hawkish U-turn. According to CoinGecko data, it is currently changing hands at $98,646.
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