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President of Queens' College, University of Cambridge, chief economic adviser at Allianz Mohamed El-Erian believes that the crypto sphere is showing a lot more stability now than before, naming a reason for that.
Also, he does not expect Bitcoin to ever turn into a global currency or one that will ever be worth $200,000 or $300,000.
"Bitcoin has been more stable than the stock market"
CNBC Squawk Box cohost Andrew Sorkin expressed a view that Bitcoin, in the current market recession, has been more stable than the stock market, or at least more than equities. He asked El-Erian if he agrees.
The economist believes that Bitcoin now is going through the typical cycle of any innovation: after a boom and overconsumption (the all-time high at around $69,000 last fall) and overproduction (referring to a great number of crypto-related products and investment funds), this period is now "ending in tears."
Crypto fans should be welcoming the current stability of Bitcon and crypto in general that the market has witnessed over the past couple of months, according to El-Erian.
Now, the economist believes, there is certainly a better basis for crypto.
"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
"Bitcoin is not going to $300,000," El-Erian thinks, and here's why
Mohamed El-Erian made it clear that he does not believe that Bitcoin will ever become a global currency because it will not receive mass adoption.
Referring to those Bitcoin enthusiasts who expect BTC to go as high as $200,000 or $300,000, because they expect the leading crypto to gain mass adoption, the economist said he does not believe in it.