The cryptocurrency market is unlikely to return to rapid growth in the near term, the chief advisor of Allianz believes. Investors should expect that bitcoin falls even lower.

Allianz's chief economic adviser Mohamed El-Erian suggested that cryptocurrencies are overvalued, but added that it is too early to talk about the complete death of the cryptocurrency market.

“Crypto is not dead, and certainly the underlying technology is not dead. We’re going to see more widespread adoption, by both the private and public sector, of the blockchain technology and related technologies.”

In his opinion, the fair "reasonable" price of bitcoin should be considered a level of $5000.

“In terms of crypto, what we’re getting is the realization that adoption is not going to be as big and as quick as the proponents of crypto would like,” he says.

He added that bitcoin, most likely, will manage to occupy a certain niche in the financial ecosystem, but it is unlikely that it will be able to become a global currency dreamed by bitcoin enthusiasts.

Since the beginning of 2018, the total capitalization of the cryptocurrency market has decreased by 80%, and the price of bitcoin has fallen by 60%.