Mohamed El-Erian, a renowned economist and Chief Economic Advisor at Allianz, has disclosed that he purchased Bitcoin (BTC/USD) a few years back. El-Erian revealed this news during an interview earlier today, saying he sold his BTC holdings too early due to behavioral mistakes. While he did not disclose how much BTC he bought, El-Erian said he dipped his toes in BTC during the crypto winter of 2018.
In the interview, the famed economist said he felt compelled to buy BTC after it slipped from around $19,000 (£14,113.29) to $3,000 (£2,227.78). He then held on to his BTC until late 2020, when the flagship cryptocurrency notched the $19,000 (£14,113.29) level again. After selling his coins, BTC continued surging and hit $60,000 (£44,555.70) for the first time in April 2021.
Although BTC suffered another crash that saw it revisit the $28,000 (£20,792.66) level, it soared again due to inflation fears and the listing of the ProShares BTC futures ETF (BITO) on NYSE. As a result, the leading crypto by capitalization surged to set a new ATH at $68,789.63 (£51,082.84) on November 10.
Due to the volatility of digital assets, BTC plunged again. At the time of writing, the coin is changing hands at $60,594.48 (£44,997.16) after losing 7.72% over the past 24 hours.
El-Erian is looking to invest in BTC again
After selling his BTC holdings prematurely, El-Erian is looking to re-enter the market again. However, he only seeks to invest under certain conditions. According to him, there are three classes on investors in the BTC market.
These are fundamentalists, professional investors, and speculators. He believes investors in the first two categories are helping build a strong BTC market in the long term.
The economist further noted that he would only consider investing in BTC again after the market shakes off speculators.
Explaining why he only wants to buy into a market with fundamentalists and professional investors, El-Erian said,
These other two levels are pretty solid in terms of supporting bitcoin and other cryptocurrencies. The key thing here is the underlying technology and the model. And those two things are going to be very influential in the period ahead.
The economist added that BTC is a disruptive force in the finance industry. However, he does not believe it can become a global currency or edge out the US dollar. With more mainstream investors injecting money into BTC, El-Erian says the crypto space will soon start engaging with financial watchdogs to avoid regulatory headwinds.
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