Allianz economist flags Fed policy trigger for Bitcoin rally

Mohamed A. El-Erian, the chief economic adviser to Allianz’s asset manager, suggested which changes in Fed policy would push Bitcoin’s price higher.

What happens to #crypto & #gold if the Fed is tempted to raise their inflation target from 2% to 3%?
«They both go higher,» says @elerianm pic.twitter.com/QNPzFu8NnP

— Squawk Box (@SquawkCNBC) April 18, 2022

The expert predicts that the Fed may raise its target for the annual inflation rate from 2% to 3%. He believes reaching the initial figure is unlikely, and failure to meet it would erode trust in monetary policy.

In the event of such a regulator decision, prices of gold and cryptocurrency would rise, the economist believes.

The bestselling author “Rich Dad, Poor Dad” and entrepreneur Robert Kiyosaki repeated his call to invest in bitcoin and precious metals as ‘insurance against morons running the world’.

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

On April 18, the top cryptocurrency reached a local low from mid-March, below $39,000.

Against this backdrop, cryptocurrency critic and gold advocate Peter Schiff noted that Bitcoin correlates with technology stocks, not with safe-haven assets.

#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

As reported in 2021, El-Erian explained how he made money on bitcoin after the crypto winter and admitted that he sold the coins ‘too early’.