Since its peak in December last year, the cryptocurrency Bitcoin has fallen 70 percent and as late as last week, the price fell by 10 percent after the Japanese authorities ordered several crypto exchanges to improve their money laundering efforts.
Now, Allianz chief economist Mohamed El-Erian believes that Bitcoin is about to be worthwhile again if the price drops down to $ 5,000.
Bitcoin reached its highest price in December 2017 with a value just under $ 20,000, but the expert does not believe that the currency is going to reach this level again.
“I do not think we will get back to $ 20,000 all the way, but I think there will be a base where those who really believe in a future for Bitcoin will consolidate and that it will give a boost,” said Mohamed El-Erian to CNBC.
In the future, Mohamed El-Erian believes that cryptocurrencies will not be treated as currencies but rather traded as raw materials.
“It will not be a currency, it will be another commodity-like asset that you can trade with, and primarily as a storage of value,” said Mohamed El-Erian to CNBC.
Back in September, Ari Paul, CIO of BlockTower Capital tweeted the following about one of Mohameds previous staments about Bitcoin:
Bitcoin is currently trading at $ 6 395, and the price has went up over 8% in the last 24 hours.
Crypto market 24/h performance. Source: coin360