Mohamed El-Erian – Chief Economic Adviser at Allianz – thinks bitcoin will never emerge as a global reserve currency, and its price will not surpass the $100K milestone.
Still, he believes the cryptocurrency sector will survive the ongoing bear market and remain a vital part of “the ecosystem of payments.”
Bitcoin Isn’t Going to the Moon
In a recent interview for CNBC, El-Erian described bitcoin as a technological innovation that reached its peak (nearly $70,000 in November 2021) thanks to the huge enthusiasm among investors, over-consumption, and over-production. However, the crypto winter and the adverse macroeconomic events ceased this progress, and the ecosystem is “reinforcing itself” currently.
According to the economist, investors should welcome the recent relative stability of the asset, which indicates that the worst of the bear market has already passed.
In his view, bitcoin and some of the altcoins will overcome the issues if watchdogs impose appropriate regulations. Nonetheless, he does not think the price of the leading cryptocurrency will skyrocket beyond the $100K level, nor will it receive massive adoption from institutions:
“To be clear, I do not think that bitcoin will become a global currency, I don’t think it will get massive adoption. When people say it will reach $100,000, $200,000, $300,000, they assume massive adoption: you are not going to get that.”
Despite his somewhat bearish stance, El-Erian was once a HODLer. He purchased bitcoin during the crypto winter of 2018, when the asset stood at around $3,000, and sold his position when it is soared to $19,000 in 2020.
The Opposite Corner
A $100,000 price tag per one bitcoin is a massive milestone for the asset, and many proponents have previously speculated on when (not if) it will go there.
Michael Saylor predicted a bright future for bitcoin, maintaining it is headed towards $1 million. He went further, describing it as “unique” as no such network provides the same level of security.
Even some industry outsiders, like Zak Pendl – co-head of Global FX at Goldman Sachs, predicted a similar faith for the cryptocurrency.
Mike McGlone – Senior Commodity Strategist at Bloomberg Intelligence – claimed in October that the asset will skyrocket to $100K in five to ten years.
“The key thing right now is it’s getting pounded, but it’s one of the most discounted it’s ever been on 100-week and 200-week moving averages, and it’s simple facts of supply demand and adoption,” he added.