Chief economic adviser at Allianz, Mohamed El-Erian, believes the difference of opinion between the private and the official sector could lead to an “accident” in bitcoin.
In an interview with CNN Business, the President of Queens’ College, Cambridge said that the risk for digital assets comes from the official sector which may finally draw a line on bitcoin.
“The risk comes from the official sector. On one hand, the private sector is embracing bitcoin, both as a form of payment and as a way to invest,” El-Erian said.
On being asked what he thinks of the current bull run in the wake of unprecedented liquidity, El-Erian said investors are chasing a “rational bubble”.
El-Erian further added that the market was dangerously close to a “market accident” in the wake of commotion created by Reddit, Robinhood, and certain stocks which would have ultimately spiraled across the financial markets.