The world’s largest cryptocurrency may lose its luster in 2022, as the crypto bubble continues to deflate.
According to a note by Invesco seen by Business Insider, there is a 30% chance that the price of bitcoin could fall below $30,000 this year, because the cryptocurrency is seen as a financial mania that may soon transition into steep loses. “The mass marketing of Bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash,” said Invesco’s global head of asset allocation Paul Jackson.
“A loss of 45% is experienced in the 12 months after the peak of a typical financial mania,” he continued, warning that if the virtual token follows such a pattern, its price could plummet to anywhere between $34,000 and $37,000 before October of this year. At the beginning of 2021, the price of bitcoin jumped from around $33,000 to a record-high of $69,000 by November. Since then, however, the cryptocurrency has fallen to around $41,300 at the time of writing.
Still, Jackson cautioned that such a scenario may not end up materializing. “Last year, we spoke of Bitcoin falling below $10,000, but instead it reached a peak of around $68,000.”
Information for this briefing was found via Business Insider. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.