The post Bitcoin and Ethereum Bounce Back After Chaotic Week appeared on BitcoinEthereumNews.com. BitcoinEthereum The crypto market has been on a rollercoaster this week, but the latest turn is finally upward. After days of whiplash trading, Bitcoin has surged back into positive territory, dragging sentiment with it. Ethereum also erased the steep drop it suffered at the start of the week, recovering the 9% it lost in a matter of hours. Still, neither coin has returned to the highs they enjoyed earlier this year, reminding traders how fragile momentum remains. Why the Swings Are So Violent Allianz’s Chief Economic Advisor Mohamed El-Erian says the turbulence isn’t random – it’s structural. In his view, crypto still leans heavily on a fast-moving crowd of traders who chase headlines and exit just as quickly. He refers to these participants as “tourists,” arguing that they dominate the space far more than long-term, institutional holders. El-Erian describes the situation as an upside-down pyramid. At the bottom sits a relatively small community of reliable, committed investors. Above them is a massive layer of speculative players whose constant shifts in positioning magnify every rally and every correction. He contrasted this with gold, where long-term buyers make up a far larger share of the market and therefore dampen extreme price swings. Looking Ahead to 2026 Despite the shaky foundation, El-Erian isn’t dismissing crypto’s future. He says conversations with industry insiders reveal a growing focus on real-world assets (RWA), with many expecting tokenized versions of traditional assets to find broader use cases in the next couple of years. According to him, the momentum behind RWA is genuine and may shape much of the industry conversation in 2026. Crypto’s Role, Without the Hype El-Erian cautioned against the idea that digital assets are on track to replace national currencies. Instead, he sees them becoming a durable part of the financial ecosystem – influential, widely… The post Bitcoin and Ethereum Bounce Back After Chaotic Week appeared on BitcoinEthereumNews.com. BitcoinEthereum The crypto market has been on a rollercoaster this week, but the latest turn is finally upward. After days of whiplash trading, Bitcoin has surged back into positive territory, dragging sentiment with it. Ethereum also erased the steep drop it suffered at the start of the week, recovering the 9% it lost in a matter of hours. Still, neither coin has returned to the highs they enjoyed earlier this year, reminding traders how fragile momentum remains. Why the Swings Are So Violent Allianz’s Chief Economic Advisor Mohamed El-Erian says the turbulence isn’t random – it’s structural. In his view, crypto still leans heavily on a fast-moving crowd of traders who chase headlines and exit just as quickly. He refers to these participants as “tourists,” arguing that they dominate the space far more than long-term, institutional holders. El-Erian describes the situation as an upside-down pyramid. At the bottom sits a relatively small community of reliable, committed investors. Above them is a massive layer of speculative players whose constant shifts in positioning magnify every rally and every correction. He contrasted this with gold, where long-term buyers make up a far larger share of the market and therefore dampen extreme price swings. Looking Ahead to 2026 Despite the shaky foundation, El-Erian isn’t dismissing crypto’s future. He says conversations with industry insiders reveal a growing focus on real-world assets (RWA), with many expecting tokenized versions of traditional assets to find broader use cases in the next couple of years. According to him, the momentum behind RWA is genuine and may shape much of the industry conversation in 2026. Crypto’s Role, Without the Hype El-Erian cautioned against the idea that digital assets are on track to replace national currencies. Instead, he sees them becoming a durable part of the financial ecosystem – influential, widely…

Bitcoin and Ethereum Bounce Back After Chaotic Week

2025/12/04 15:44
BitcoinEthereum

The crypto market has been on a rollercoaster this week, but the latest turn is finally upward.

After days of whiplash trading, Bitcoin has surged back into positive territory, dragging sentiment with it. Ethereum also erased the steep drop it suffered at the start of the week, recovering the 9% it lost in a matter of hours. Still, neither coin has returned to the highs they enjoyed earlier this year, reminding traders how fragile momentum remains.

Why the Swings Are So Violent

Allianz’s Chief Economic Advisor Mohamed El-Erian says the turbulence isn’t random – it’s structural. In his view, crypto still leans heavily on a fast-moving crowd of traders who chase headlines and exit just as quickly. He refers to these participants as “tourists,” arguing that they dominate the space far more than long-term, institutional holders.

El-Erian describes the situation as an upside-down pyramid. At the bottom sits a relatively small community of reliable, committed investors. Above them is a massive layer of speculative players whose constant shifts in positioning magnify every rally and every correction. He contrasted this with gold, where long-term buyers make up a far larger share of the market and therefore dampen extreme price swings.

Looking Ahead to 2026

Despite the shaky foundation, El-Erian isn’t dismissing crypto’s future.

He says conversations with industry insiders reveal a growing focus on real-world assets (RWA), with many expecting tokenized versions of traditional assets to find broader use cases in the next couple of years. According to him, the momentum behind RWA is genuine and may shape much of the industry conversation in 2026.

Crypto’s Role, Without the Hype

El-Erian cautioned against the idea that digital assets are on track to replace national currencies. Instead, he sees them becoming a durable part of the financial ecosystem – influential, widely used, but not dominant. And regardless of how adoption evolves, he expects volatility to remain a permanent feature of the landscape.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

Author

Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.

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