Bitcoin is heading for a price crash in 2022, says the head of Invalco Global
Bitcoin is heading for a price crash in 2022, says the head of Invalco Global
- The Investco Global Chief believes that Bitcoin can follow a similar pattern as the 1929 stock market crash.
- Bitcoin already corrected by more than 30 percent of his all -time high in November 2021.
Bitcoin has become a discussion center again, since the world's largest cryptocurrency continues to act in the range of $ 41,000 to $ 44,000. Paul Jackson, Global Head of Asset Allocation from Invalco, believes that the Bitcoin bubble could burst and that BTC could lose half of its value in 2022 if investor mania wanes.
Jackson's comments came through his from ten "unlikely but possible results for 2022". The Investco boss also said that he sees the BTC Prize in 2022 under the $ 30,000 mark. This will be more than 50 percent price corrections from the all -time highs. BTC has also shown such a correction in the past, and therefore this option cannot be completely excluded.
Citing the 1929 stock exchange crash said that the boom of the Bitcoin value has clear marks of the phenomenon, which is called "financial craze". He also wrote:
The mass marketing of Bitcoin reminds us of the activity of stock exchange brokers in the run-up to the crash from 1929. We know how that ended, and Bitcoin has already fallen at around $ 42,000 (as of January 7, 2022) and follows the downward path of our Mania template. This template indicates that there is a loss of 45 percent in the 12 months after the height of typical financial mania.
What if Bitcoin follows the manie template?
If Bitcoin replied this template of the 1929 stock market crash, Bitcoin could fall to $ 34,000 by the end of October 2022, said Jackson. Jackson added further speculative:
The template also indicates that bubbles usually empty for another two years. Therefore, we think that it is not too far to imagine that Bitcoin falls below $ 30,000 this year (with the health warning that we have already done this wrong and that it seems to go through a number of bubbles).
In the past, Bitcoin has shown a similar behavior. The BTC Prize reached its maximum in December 2017 and had entered a difficult correction the following month in January 2018 and lost more than half of its value. Later, Bitcoin continued to be volatile for a long period of two years and crashed under $ 4,000 before recovering the mega rally in 2020.
Jackson is not the only one who expects Bitcoin to continue corrected. Many other market analysts believe the same. In a recently published report by JPmorgan, almost 20 analysts believe that BTC will fall below $ 30,000. However, the majority of them believe that Bitcoin could head to $ 60,000 by the end of the year.
But we are sure that some exciting actions are ahead of us. More countries could introduce Bitcoin as a legal means of payment with more regulatory clarity and thus more institutional participation.
Source: Crypto-news-flash.com
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