Bitcoin is likely to fall below $30,000 in 2022 as the bubble bursts, U.S. asset management giant Invesco wrote in its “unexpected but likely” forecast for 2022.
Invesco strategist Paul Jackson said the massive marketing around bitcoin reminded him of the activities of stockbrokers on the eve of the 1929 stock market crash.
“We don’t think it’s too much to imagine Bitcoin falling below $30,000 this year.”
Paul Jackson believes that there is at least a 30% chance of this happening.
In the report, Paul Jackson wrote that Bitcoin could be viewed as a financial mania, meaning huge losses are coming.
“Asset prices are likely to drop by as much as 45% in the 12 months following the peak of the financial frenzy.”
If Bitcoin follows this pattern, there is a good chance that it will fall to between $34,000 and $37,000 by October of this year. But Paul Jackson believes that a larger decline is entirely possible, and Bitcoin is likely to fall below $30,000.
More and more investors are concerned about the future of cryptocurrencies
In a report published last week, investment bank UBS explored whether a cold winter is in store for the cryptocurrency space. That is, the price has dropped significantly and cannot be repaired for more than a year.
Antoni Trenchev, founder of cryptocurrency trading platform Nexo, believes in an interview with the media that the Fed’s interest rate hike may cause Bitcoin to fall, with the lowest price around $30,000.
After hitting an all-time high of $69,000 in November 2021, the price of Bitcoin has been on the decline and is now around $42,000.