Renowned economist Mohamed A. El-Erian talked about Bitcoin and cryptocurrencies in general in a recent interview.
Mohamed A. El-Erian says Bitcoin and cryptos are absorbing the damage
Prominent economist and financial expert Mohamed A. El-Erian commented on Bitcoin’s recent rise as the “end of the crypto winter.” According to the expert, Bitcoin’s contact with $24,000 again confirms this thesis. El-Erian says a significant portion of investors think the current time of what many have called the “crypto winter” is finally over, the damage is under control, and we have a “better basis to move forward.” MicroStrategy CEO Michael Saylor shared the interview on Twitter.
“A lot of people think that the crypto winter is now behind us; the damage has been absorbed, there has been a flushing out of excesses, and now we have a better base to go forward." – @elerianm on #Bitcoin pic.twitter.com/UhjKLyoytE
— Michael Saylor⚡️ (@saylor) July 22, 2022
Saylor highlights the following statements of Mohamed A. El-Erian in the tweet above:
Many people think that the crypto winter is over; the damage has been absorbed, the excesses have been cleared, and we now have a better base to move forward.
While El-Erian’s statements are quite positive, the community is worried about Bitcoin sales by big companies. We saw that Tesla, which announced its quarterly report on Wednesday, had to sell a large amount of BTC.
Tesla sold $940 million worth of BTC
As you follow on Kriptokoin.com, the report released on Wednesday showed that Tesla sold 75% of its Bitcoins.
Elon Musk is basing these sales on Tesla’s cash needs after pausing the Shanghai factory during the COVID-19 era. This news caused the Bitcoin price to drop almost 3% and lose $23,000. Having bought $1.5 billion worth of Bitcoin at the beginning of 2021, Tesla sold most of this reserve. Meanwhile, last year, it suspended BTC payments due to issues with Bitcoin mining’s impact on the environment.
However, Elon Musk later shared that the company is willing to buy more Bitcoin in the future. He also doesn’t want this transaction to be interpreted as having a bad view of BTC. As a result, Bitcoin is once again trading below $22,600, accompanied by negative fundamental developments.
If Bitcoin fails to hold at this level, it risks more losses.
Most analysts have been emphasizing the importance of staying above $22,800 for some time to continue the bullish momentum. However, BTC price is falling below its 200-week moving average.
Data from TradingView showed that Bitcoin has fluctuated around the $23,000 support over the past few days. It is currently trading slightly below the 200-week moving average (MA). This level is where Bitcoin’s past bear market bottoms have been. Van de Poppe, one of the popular Twitter analysts, says that if 23,500 is broken, the next support will be $ 21,500.
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