Allianz Chief Economist Mohamed A. El-Erian who purchased BTC back in 2018 during the bear bottom, announced that he sold his holdings just as the new all-time high was set so let’s find out more about his decision in today’s Bitcoin news.
2017 was the year when BTC made its way into mainstream finance but 2018 was the year when wild expectations and speculation over what the crypto would become, came back to reality and with it, the price skyrocketed. The highly speculative asset is volatile and now even more so because of the global adoption movement which makes it a great asset to trade each peak and through in between. As profitable as it is to hold the asset, it’s impossible not to see the opportunity in purchasing each bottom and selling the top.
Execution is far more difficult than it sounds so there’s no telling In when BTC will top or will bottom. There was an ideal example recently where ten separate technical indicators were showing strong bearish signals but the cryptocurrency soared higher. However, the Allianz chief economist Mohamed A. El-Erian established a buy zone for BTC’s bottom and executed its plan in 2018 when the asset bottomed. He followed his own advice and purchased BTC at $4,728, two weeks from the crypto bottom. El-Erian held the crypto for two years that was filled with many ups and downs.
For some reason, however, he just sold the asset in what people believe is the biggest bull run in history. In late 2018 during an interview with CNBC, he said he is waiting to see the asset below $5000 and to “establish a base whereby the people who really believe in the future of BTC.” The foundation was build in the $5000 region where the asset became extremely attractive for all those that haven’t purchased it already. The momentum from the bottom took BTC to $13,000 less than one year later.
The recent Black Thursday, created the confidence in the cryptocurrency to make it back to $20,000 so while the Allianz chief economist was accurate about the BTC bottom started selling, there’s a chance of more confidence in the asset before it can resume higher.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post