Mohamed El-Erian, senior economic adviser at German insurance company Allianz, said that bitcoin will never become a global reserve currency for large investors.
Mohamed El-Erian sees the first cryptocurrency as a technological innovation that peaked in November 2021 thanks to huge investor enthusiasm, overconsumption and overproduction. However, the crypto winter and adverse macroeconomic events have halted this progress, and the ecosystem is now “strengthening”.
According to El-Erian, the worst of the bear market is over. And although the crypto market is going through hard times now, it will still remain an important part of the “payment ecosystem”. The economist is confident that the problems of bitcoin and some altcoins will be resolved if the supervisory authorities introduce appropriate rules. However, he does not think that the price of the leading cryptocurrency will soar above $100,000.
“I don’t think that bitcoin will become a global currency and receive recognition from institutional investors. When people say it will hit 100,000, 200,000, or 300,000, they are assuming massive BTC adoption, but that won’t happen.”
At the same time, analysts at the Kraken crypto exchange expect a tenfold increase in bitcoin. Fund manager ARK Invest said in October that bitcoin could become more valuable than most fiat currencies, including the US dollar. Analyst and seasoned crypto trader Tone Vays has stated that Bitcoin will rise by 400% in 2023, even before the next miner reward cut.
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