According to Business Insider, Invesco analyst Paul Jackson has cautioned that the Bitcoin value might go below $30,000 in the near future.
He believes that such a pessimistic situation has a reasonable 30% probability of becoming a reality. The Bitcoin market’s irrational euphoria recalls Jackson of the years preceding the Great Depression: “The mass marketing of bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash.”
At the time of this writing, the leading cryptocurrency is trading just over $42,000 on key spot platforms. Currently, one of the major barriers for Bitcoin is the Federal Reserve’s aggressive tilt. The central bank will likely raise interest rates three times this year, putting pressure on risk assets like equities and cryptocurrencies.
Technically, the leading cryptocurrency recently established a “death cross.” The dreaded chart pattern, which is meant to predict a large correction, is frequently a trailing trader, with some traders viewing it as a buying chance.
Despite certain gloomy storylines, there are plenty of positive price forecasts. Fundstrat’s Tom Lee, for example, believes Bitcoin might reach $200,000 as early as this year.
The cryptocurrency’s hash rate continues to reach new highs, indicating that miners are spending more into the ecosystem. According to Max Keiser, this might push Bitcoin up to $220,000 this year.
