Allianz economist rules out Bitcoin rising above $100,000

Mass adoption of Bitcoin is unlikely, as is a rise in its price above $100,000. This was stated by Mohamed A. El-Erian, Allianz Asset Management’s chief economic adviser.

«If you are a #crypto fan you should welcome the relative stability we have seen the last two months,» says @elerianm #bitcoin. «#crypto can and should survive as part of the ecosystem for payments…it just needs to be better regulated.» pic.twitter.com/CyVUSNwHfw

— Squawk Box (@SquawkCNBC) October 31, 2022

"I don’t think Bitcoin will become a global currency or gain recognition from institutional investors. When people say it will reach $100,000, $200,000 or $300,000, they are assuming widespread adoption of the first cryptocurrency, but that won’t happen," the economist said.

In his view, digital gold is currently going through the typical cycle of any innovation: after a boom (reaching a record high at $69,000 in November 2021) and "overproduction" (a large number of products and funds tied to the asset), a downturn followed.

However, industry participants should view the current crypto-winter positively, El-Erian added. He noted that Bitcoin, amid the market downturn, has proven more stable than the stock market, and that the worst moments of the bear market are behind us.

The economist also stressed the importance of regulation. He said that the introduction of appropriate rules would resolve the problems facing Bitcoin and certain altcoins.

Earlier, El-Erian explained how made money on Bitcoin after the crypto-winter and admitted that he sold the coins "too early".

In spring 2022, the economist suggested which changes in the U.S. Federal Reserve’s policy would lead to a rise in the price of Bitcoin.

Earlier, Bitcoin maximalist and MicroStrategy founder Michael Saylor predicted a new all-time high for Bitcoin’s price in the next four years.

In October, trader and analyst Michael van de Poppe predicted that digital gold would reach the $30,000 level in November, and macro investor Raoul Pal allowed the crypto market capitalization to grow to $300 trillion in the next 10-15 years.

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