Cryptocurrency expert says bitcoin will never reach $ 100,000

Mohamed El-Erian, Senior Economic Advisor at German insurance company Allianz, said that bitcoin will never become a global reserve currency for large investors. El-Erian sees the flagship cryptocurrency as a technological innovation that peaked in November 2021, and even then, it was due to the huge enthusiasm of investors, excessive consumption, and overproduction of goods. However, according to the expert, the crypto winter and unfavorable macroeconomic events will allow the digital asset ecosystem to «strengthen».

According to El-Erian, the worst moments of the bear market are over. Although the crypto market is going through hard times, 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 solved if supervisory authorities introduce appropriate regulatory rules. However, the economist does not believe that the price of the leading cryptocurrency will soar above $ 100,000.

«I don’t think that bitcoin will become a global world currency and be recognized by institutional investors. When people say that it will reach 100,000, 200,000, or 300,000, they are assuming a massive spread of BTC, but this will not happen,» the expert said.

Brian Armstrong, the director of the cryptocurrency exchange Coinbase, has a polarized opinion on BTC. He recently stated that the flagship cryptocurrency will become much more popular among investors than gold is now. In a new episode of the Coinbase podcast «Around the Block,» Armstrong said: «Typically, in unfavorable macroeconomic conditions, we see a flight to safety. In traditional economies, that has always been gold. … I think this will change over time. In the next five or ten years, when the cryptocurrency economy really makes up a larger percentage of global GDP, people will treat CTS as the 'new gold'.»