Bitcoin Could End Up Suffering Bigger Losses This Year, Says Invesco Strategist Paul Jackson
Invesco strategist Paul Jackson has warned that the Bitcoin price could drop below the $30,000 level, Business Insider reports.
He sees a decent 30% chance of such a bearish scenario translating into reality.
The excessive exuberance in the cryptocurrency market reminds Jackson of the period on the cusp of the Great Depression:
The massive commercialization of bitcoin recalls the activity of stockbrokers on the eve of the crash of 1929.
The largest cryptocurrency is trading slightly above the $42,000 level on major spot exchanges at press time.
The hawkish pivot has made the US Federal Reserve one of the main headwinds for Bitcoin right now. The central bank is expected to raise rates three times this year, putting pressure on risky assets such as stocks and cryptocurrencies.
On the technical side, the largest cryptocurrency recently formed a “death cross.” The much-feared chart pattern, which is supposed to foretell a significant correction, often tends to be a lagging trader, with some traders seeing it as a buying opportunity.
Despite some bearish narratives, there is no shortage of bullish price predictions. Fundstrat’s Tom Lee, for example, estimates that Bitcoin could topple $200,000 as early as this year.
The cryptocurrency’s hash rate keeps hitting record highs, signaling that miners keep investing more into the network. This, according to Max Keiser, could propel Bitcoin to as high as $220,000 this year.
