#DecemberMarketOutlook Why Does the (BTC) Bitcoin Price Keep Fluctuating? Economist Mohamed El-Erian Explained!

Allianz Chief Economic Advisor Mohamed El-Erian commented on the recent major fluctuations in the Bitcoin price.

After the sharp swings in the crypto market this week, Bitcoin showed a strong rebound once again.

Ethereum also managed to recover the nearly 9% value it lost between Sunday and Monday. However, both assets are still trading well below the record highs seen a few months ago.
Allianz Chief Economic Advisor Mohamed El-Erian said that the main reason for this intense volatility in the market is “tourist investors.” According to El-Erian, the “established investor base” made up of long-term, institutional investors is still quite narrow in the crypto market. In contrast, the large and active group of speculative investors leads to excessive reactions in prices both upward and downward.
El-Erian described this structure as an “inverted pyramid,” pointing out that the solid base under the crypto market is still small. Reminding that long-term investors have more weight in assets like gold, El-Erian said that corrections in gold are therefore more limited.
El-Erian showed cautious optimism regarding expectations for 2026. Referring to his meetings with key figures in the crypto and blockchain space, the economist said that the growing excitement around “real-world assets” (RWA) is a correct trend.

The expert predicts that there will be both a broader and deeper area of use in the coming period.
However, El-Erian stated that he does not expect crypto to become the “dominant global currency.” While he acknowledged that crypto assets will be an important part of the ecosystem, the economist said that high volatility will continue.
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