Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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 mass marketing of bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash.
The largest cryptocurrency is trading slightly above the $42,000 level on major spot exchanges at press time.
The hawkish pivot made the U.S. Federal Reserve is one of the key headwinds for Bitcoin at the moment. The central bank is expected to hike rates three times throughout this year, exerting pressure on risk assets such as stocks and cryptocurrencies.
Despite some bearish narratives, there’s no shortage of bullish price predictions. Fundstrat’s Tom Lee, for instance, believes that Bitcoin could topple $200,000 as soon 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.
Gamza Khanzadaev
Denys Serhiichuk
