[2018-06-29] JEl-Erian calls bitcoin a buy if its price falls below $5,000

[ruthbabe]

After tumbling some 70 percent from its peak, bitcoin is reaching a point where even an authority like Mohamed El-Erian thinks it could be a buy.

The chief economic advisor at Allianz, considered one of the most influential financial market thinkers in the world, said Friday that the cryptocurrency would be worth considering if it falls before $5,000. Bitcoin was trading around $5,870 as El-Erian made his remarks to CNBC's "Squawk Box."

"I don't think you get all the way back to $20,000, but I do think that you need to establish a base whereby the people who really believe in the future of bitcoin consolidate and then that provides you a lift," he said.

Bitcoin saw a meteoric rise in 2017 as digital currencies surged in popularity and dozens of competitors came to market.

However, a number of obstacles, from continued stories of fraud to threats of a regulatory hammer coming down across the world, has caused a big pullback since a December price peak of more than $19,000.

Now, the question turns to what is the future of cryptos and the shape that bitcoin and others will take. Where at one point there were more than 40 digital currencies with market caps above $100 billion, bitcoin now alone holds that designation, according to CoinMarketCap.

El-Erian said cryptocurrencies likely won't be currencies at all but more like commodities.

"I suspect that if you look 10 to 15 years down the road, we will have digital currencies but the public sector will have involvement in that. It will not be pure bitcoin," he said. "But the blockchain technology, take that seriously."

More... https://www.cnbc.com/2018/06/29/el-erian-calls-bitcoin-a-buy-if-its-price-falls-below-5000.html

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[cryptofonia]

Great deal to buy a dip! But I guess it's not the lowest point of Bitcoin this year.

[Kemarit]

Obviously, its a good buy today specially that the price is on the borderline $6000 and you don't have to wait till it really falls at the $5,000 mark. Its already cheap and as a discount, so why wait? But yes, I would have to agree with him that it will be very difficult to achieved the what we seen in December, it might not be replicated this year. I will be happy to see bitcoin going at least 5 digit mark this 2018 and then let's see how it goes in 2019. The future still really looks good, its just we are having a huge barrier right now, but sooner or later we are going to break that again and see bitcoin price going back to normal.

[richardsNY]

Great deal to buy a dip! But I guess it's not the lowest point of Bitcoin this year.

It depends on what your targets are. If you are looking to invest and hold for a couple of years, you can even buy right now and ignore the market from that point. The only reason $5000 targets matter is that people are looking to quick flip it and then repeat the same buy-sell actions over and over again. It's somewhat of a poisonous attitude, but then we can't really blame people for chasing profits like that. We have all been there initially. The difference is that we actually use Bitcoin as intended, while most of the others only speculate with it and don't care what happens afterwards....

[stomachgrowls]

Great deal to buy a dip! But I guess it's not the lowest point of Bitcoin this year.

It depends on what your targets are. If you are looking to invest and hold for a couple of years, you can even buy right now and ignore the market from that point. The only reason $5000 targets matter is that people are looking to quick flip it and then repeat the same buy-sell actions over and over again. It's somewhat of a poisonous attitude, but then we can't really blame people for chasing profits like that. We have all been there initially. The difference is that we actually use Bitcoin as intended, while most of the others only speculate with it and don't care what happens afterwards....

Usually these kind of price point presumptions is always basing on technical aspects but we do all know that it doesnt work anytime.I do even consider this would already be a great point to buy unless if you do active trade then we would normally look up the lowest point as possible but if we do go for long term then its necessary to look up into those prices yet we can enter anytime and the price is considerable.
I strongly believe too that $19k ATH wouldnt be easy to achieve once again.

[Slow death]

Great deal to buy a dip! But I guess it's not the lowest point of Bitcoin this year.

I read this news and I stayed for a few minutes thinking, why all the news channels took this statement so seriously? the guy has money, the price is $ 5900 (something very cheap) and even then the guy says he considers buy if its price falls below $5,000? What would be his problem to buy now? he himself would make much profit without any problem. my opinion is that this guy just wanted to have a few hours of fame talking about it and as always our news channels are publishing anything that some famous says.

[kevoh]

Great deal to buy a dip! But I guess it's not the lowest point of Bitcoin this year.

I read this news and I stayed for a few minutes thinking, why all the news channels took this statement so seriously? the guy has money, the price is $ 5900 (something very cheap) and even then the guy says he considers buy if its price falls below $5,000? What would be his problem to buy now? he himself would make much profit without any problem. my opinion is that this guy just wanted to have a few hours of fame talking about it and as always our news channels are publishing anything that some famous says.

Or this Erian guy could actually be wishing that through talking about it the price truly falls below $5000 so that he can buy more. Every one in the Bitcoin ecosystem, from the huge whales to the non-Bitcoin enthusiast, is just playing mind games and hoping that Bitcoin price will favour them somehow.

[ruthbabe]

Great deal to buy a dip! But I guess it's not the lowest point of Bitcoin this year.

I read this news and I stayed for a few minutes thinking, why all the news channels took this statement so seriously? the guy has money, the price is $ 5900 (something very cheap) and even then the guy says he considers buy if its price falls below $5,000? What would be his problem to buy now? he himself would make much profit without any problem. my opinion is that this guy just wanted to have a few hours of fame talking about it and as always our news channels are publishing anything that some famous says.

Yes, he really can afford to buy even if the price is up to $7000 or $10000. But I think he wants to buy it cheap so he could amass more bitcoins rather than buy it at the higher price.

[NeMa94]

People that have great amounts behind them won't buy at $7000 or at $10000. That is why they have big bucks - because they won't give it easily or overpay something. This guy obviously thinks that BTC is not worth more than $5k and he won't pay it more. After all, we all want to buy low/ sell high. I truly respect that he has pointed out the value of blockchain.

[1Referee]

People that have great amounts behind them won't buy at $7000 or at $10000. That is why they have big bucks - because they won't give it easily or overpay something. 

That all depends on the sentiment and momentum of the market. If the market hints at a major increase, they'll gladly pay market price. Last year was the perfect example of that. Currently there is nothing people can hold on to; it's either we're going up or down, there is no such a thing as the price is high or low. If people are only looking to scoop up some short term profits, buying now is a pure gamble.

Even if we fall back to $5000 it is still not clear whether or not it's a good short term bet. Just because the price has gone down a lot doesn't mean it's cheap now. Long term speaking every current price is cheap, not so much for flip flop traders looking to squeeze out every possible penny.

The problem with these buy recommendations is that they will be altered as soon as the price falls well below their targets. We have seen that happen numerous times already. First $10,000 was a good price, then $9000, then $8000, etc. No one knows what the market is up to; everyone saying buy at this or that price is just as knowledged as you and me. People should buy when they feel it's time. If it's $6000 then fine. If $8000 then fine too. It all depends on your targets.

[Betwrong]

People that have great amounts behind them won't buy at $7000 or at $10000. That is why they have big bucks - because they won't give it easily or overpay something.  

That all depends on the sentiment and momentum of the market. If the market hints at a major increase, they'll gladly pay market price. Last year was the perfect example of that. Currently there is nothing people can hold on to; it's either we're going up or down, there is no such a thing as the price is high or low. If people are only looking to scoop up some short term profits, buying now is a pure gamble.

Even if we fall back to $5000 it is still not clear whether or not it's a good short term bet. Just because the price has gone down a lot doesn't mean it's cheap now. Long term speaking every current price is cheap, not so much for flip flop traders looking to squeeze out every possible penny.

The problem with these buy recommendations is that they will be altered as soon as the price falls well below their targets. We have seen that happen numerous times already. First $10,000 was a good price, then $9000, then $8000, etc. No one knows what the market is up to; everyone saying buy at this or that price is just as knowledged as you and me. People should buy when they feel it's time. If it's $6000 then fine. If $8000 then fine too. It all depends on your targets.

Thinking long term those prices were good indeed. Bitcoin always surpasses every ATH eventually, so why should we think that this time it will not happen again? Regarding El-Erian's statement, if I was an investor who has some respect for his opinions, I would buy immediately because what he is saying is basically that Bitcoin will not die but rather will be rising in the future. He just suggests to wait more for the price to fall to have bigger profits afterwards, but this waiting can also be called greed at this point imo.

[NeMa94]

People that have great amounts behind them won't buy at $7000 or at $10000. That is why they have big bucks - because they won't give it easily or overpay something. 

That all depends on the sentiment and momentum of the market. If the market hints at a major increase, they'll gladly pay market price. Last year was the perfect example of that. Currently there is nothing people can hold on to; it's either we're going up or down, there is no such a thing as the price is high or low. If people are only looking to scoop up some short term profits, buying now is a pure gamble.

Even if we fall back to $5000 it is still not clear whether or not it's a good short term bet. Just because the price has gone down a lot doesn't mean it's cheap now. Long term speaking every current price is cheap, not so much for flip flop traders looking to squeeze out every possible penny.

The problem with these buy recommendations is that they will be altered as soon as the price falls well below their targets. We have seen that happen numerous times already. First $10,000 was a good price, then $9000, then $8000, etc. No one knows what the market is up to; everyone saying buy at this or that price is just as knowledged as you and me. People should buy when they feel it's time. If it's $6000 then fine. If $8000 then fine too. It all depends on your targets.

Thank you for your for your brief explanation. I am fairly new to discuss these topics, this was just my first impression.

[1Referee]

He just suggests to wait more for the price to fall to have bigger profits afterwards, but this waiting can also be called greed at this point imo.

It's definitely greed and very much short term thinking.

$6000 > $100,000 = $94,000 profit.
$5000 > $100,000 = $95,000 profit.

The difference isn't even worth waiting for.

Waiting most likely results in regret of not having bought sooner. In that case people tend to wait for the price to go back down, but what happens is that the price keeps going up even further. It's all unnecessary suffering that people put themselves through. Long term investments don't require you to be picky; the only thing you have to do is buy and secure your coins offline.

Thank you for your for your brief explanation. I am fairly new to discuss these topics, this was just my first impression.

No worries man, we are here to learn and to help each other forward. Stay active.

[Betwrong]

He just suggests to wait more for the price to fall to have bigger profits afterwards, but this waiting can also be called greed at this point imo.

It's definitely greed and very much short term thinking.

$6000 > $100,000 = $94,000 profit.
$5000 > $100,000 = $95,000 profit.

The difference isn't even worth waiting for.

Waiting most likely results in regret of not having bought sooner. In that case people tend to wait for the price to go back down, but what happens is that the price keeps going up even further. It's all unnecessary suffering that people put themselves through. ~

Yeah, that's what I meant basically, and look at the market now. Bitcoin is $6,671 and counting. Has the rising you've mentioned started already? Maybe. But even if this is not the case yet, waiting for the price below $5,000 is not what I would recommend. We may not see $100k this year, but no one questions $10k, right? So, why wait longer? Just because El-Erian said so? Who knows maybe he's buying now himself not following his own advice.

[Indamuck]

Trying to time the bottom is foolish.  Now all these people that were taking his advice of a $5,000 bitcoin will be waiting forever...

Never go all in, keep some of your funds in cash so you can buy any big dips.  You really shouldn't worry about where you enter if you have the ability to cost average down if the price dips.

[richardsNY]

You really shouldn't worry about where you enter if you have the ability to cost average down if the price dips.

It looks so easy, and it actually is easy, but people still don't seem to understand the importance of dollar cost averaging. We have decades of empirical stock market evidence that the average person won't ever learn from anything. I seriously don't know what it is that makes them stay this stupid, but it's quite disturbing actually -- they only harm themselves with their stupidity and make the elite gain more of an advantage over them. My first experience with the stock market was that I only buy stocks that have been dumped down badly after reading what the reason for that decline was. It requires only common sense to look at the chart and do basic level research....