As the first and most prominent cryptocurrency, Bitcoin has elicited a variety of industry responses and forecasts. Its rise over the last several years has exceeded that of traditional assets.
However, the current dismal trend in the cryptocurrency market this year has raised questions about the token’s future.
Mohamed El-Erian, the Chief Economic Adviser of Allianz, recently shared his perspective on the likely future of BTC. The main crypto asset, according to him, will become a worldwide reserve currency, but its price will not approach $100,000.
In addition, El-Erian believes the crypto industry will endure the crypto winter. He said that the crypto business will likewise develop to become a significant component of payment systems.
In an interview with CNBC, El-Erian responded by describing Bitcoin. As a creative technical endeavour, he said that Bitcoin attained its zenith when its price surpassed $70,000 in November 2021. El-Erian identified the reasons that contributed to the rise of BTC, including investors’ fervent excitement, overproduction, and overconsumption.
El-Erian thinks that Bitcoin and the leading altcoins will overcome regulatory obstacles. With the correct restrictions in place, he argued that performance may not decline. However, the likelihood of Bitcoin reaching $100,000 or obtaining widespread institutional acceptance remains doubtful.
In addition, according to the chief economist, the crypto winter and negative macroeconomic circumstances hindered BTC’s growth. However, there is currently a progressive strengthening of the crypto ecosystem.
El-Erian advises investors to recognize the relative stability of Bitcoin on this basis. Moreover, recent market activity suggests that the crypto market has already seen its worst downward trend, which is almost finished.
El-Erian has previously owned Bitcoin. During the 2018 crypto winter, the economist acquired the asset for $3000 per token. However, he sold off his BTC holdings in 2020 when the price per coin reached $19,000.
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