According to an Invesco report that points to similarities between crypto marketing campaigns and stockbroker activity ahead of the 1929 Great Depression, Bitcoin may decline below $30,000 this year.
Invesco’s head of global asset allocation, Paul Jackson, explained that there is a 30% chance that Bitcoin will fall below $30,000 and added that if Bitcoin mania eventually follows in the footsteps of other manias, the next few years will be unstable for the world’s largest cryptocurrency. At the same time, he also noted that the loss amounted to 45% after the peak of a typical financial mania during the year.
Bitcoin reached its latest new all-time high of $69,000 in November. Since then, it has been in consolidating trying to hold the level of $40,000 level.
According to Jackson, if Bitcoin fails to hold above $40,000, then prices could fall to $34,000-$37,000 in the next nine months. It should be noted that the sale could accelerate even faster.
However, he pointed out that this is only a 30% possibility, recalling that when Bitcoin actually rose to $68,000 last year when it was predicted to fall below $10,000.
Invesco is the latest investment company to announce the possibility of an even more global sell-off. Earlier this week, UBS said there were growing signs of a sell-off, adding that the upcoming Fed rate hike would put pressure on Bitcoin and its appeal to hedge inflation.
The material has been provided by InstaForex Company – www.instaforex.com