Many crypto bulls believe that Bitcoin will prevail despite the bearish cryptocurrency market. Mohamad El Erian, chief economic advisor at Allianz, stated in an interview that cryptocurrencies were over-valued.
El-Erian explained that cryptocurrencies are still viable, even though they may be undervalued in a conversation with Yahoo Finance. El-Erian says that previous bullish actions were due to unwarranted speculations, which led to a buying frenzy. El-Erian reiterates the June interview in which he mentioned bitcoin as an asset with a buy value of approximately $5,000. In his most recent interview, he states:
“What we are seeing is that adoption of crypto is not going to happen as quickly or as large as proponents would like. It’ll be there, it will last for a while, it’ll play a part in the ecosystem, but not the currency many proponents want it to.
The cryptocurrency market is experiencing a strong bearish correction. Since its peak in 2017, the industry’s capitalization dropped by 80 percent. The fall is affecting all the top coins. All eyes and hopes are now on bitcoin’s price. It is currently at $5,800 annually, just $800 more than El-Erian’s expectations.
See what others think about Bitcoin’s decline.
The majority of financial experts believe that bitcoin’s downtrend will continue. There is a possibility of its value falling further, which could be even worse than El-Erian anticipates.
Luis Carranza, founder of London Fintech Week in June, stated that Bitcoin could reach its lowest point at $2,500 in 2018. Express UK was told by him:
“$4,500 may be the lowest, but $2,500 is not impossible to be the lowest.”
Nouriel Roubini is a cryptocurrency skeptic. He also claims to be an American economist. Roubini predicted that the stock market would crash in 2008.
An analyst at ETX Capital Neil Welson told the Guardian that bitcoin would fall further during the previous bottom formation.
“Selling pressure is high at the moment, as there have been no good news for bitcoin bulls in recent weeks. It is risky to try and catch the falling knife.
These economists remain bearish, but there are still some bitcoin supporters who have never lost their optimism.
Jurgen von Hagen, Universitat Bonn believes that the success of any decentralized asset depends on the limitations of traditional currencies.
“Cryptocurrencies will become more attractive if the central bank currencies become very unstable.” They would not be a cause of instability, but would be used in large numbers by the financial system.
Barry Silbert, the founder and CEO of Digital Currency Group believed that cryptocurrency would not fall below its June bottom.
It is clear that the Crypto market is divided into three groups. One is optimistic about it, particularly bitcoin, and one is losing faith and expecting the situation to worsen further. The third is in between these two and decides which side to support.
Investors are inclined to invest
Goldman Sachs and Sachs were the first to enter the crypto space. However, investors have a strong inclination. Many financial institutions are pushed to adopt emerging trends. So sooner or later, other institutions will have ventured into the crypto space.
Although Milne made it sound sarcastic, he was actually making a point. The rapid rise in demand from institutions for cryptocurrency assets is evident by the sudden shift of banks towards them. This could be due to the current bear market. However, the low price range for most cryptocurrencies is not entirely bad.