An analyst for US-based investment management firm Invesco predicts that Bitcoin’s price could fall below $30,000 before the end of the year.
According to a report by Business Insider, strategist Paul Jackson warned in a recent note that Bitcoin had a roughly 30% chance of plunging in value to below $30K. Jackson compared the unbridled bullishness of the crypto markets and investment landscape to the period just before the Great Depression.
The mass marketing of bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash.
Jackson, who serves as Invesco’s head of asset allocation, wrote that it was “not too much of a stretch” to imagine Bitcoin falling below $30K before the end of the year and speculated that the asset now constituted financial mania. He noted that a loss of 45% in valuation within 12 months after peak is typical for a financial mania product.
The strategist gave the caveat that his bearish scenario was far from certain.
Last year, we spoke of bitcoin falling below $10,000, but instead it reached a peak of around $68,000.
According to a recent note by investment bank UBS, warning signs in the form of interest rate hikes from the Federal Reserve in 2022 could dent the appeal of Bitcoin and cryptoassets, in addition to a growing realization among investors that Bitcoin is not “better money” due to its extreme volatility.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.