The price of bitcoin could fall to $30,000 as the bubble in the asset deflates. This opinion was expressed by specialists of the investment company Invesco in their list “incredible but possible” results in 2022.
“The mass marketing of bitcoin reminds us of the activity of stockbrokers in the run-up to the crash of 1929,” the experts wrote.
The decline from the highs to $42,000 in early January is exactly in line with the bubble pattern, they said.
The trajectory assumes that the asset will lose 45% of its value within 12 months of the peak of a typical financial mania.
Under this model, the price will drop to $34,000-$37,000 by the end of October.
“The pattern also suggests that the bubbles typically deflate over the next two years. Therefore, we think it is not too difficult to imagine Bitcoin falling below $30,000 this year,” the experts said.
They admitted that they were wrong with the forecast for 2021, when they predicted a price drop below $10,000, and the first cryptocurrency reached record levels at levels around $69,000. Invesco specialists explained their mistake by the fact that bitcoin seems to be going through a series of bubbles.
Recall that in December 2021, the CEO and founder of Navellier & Associates, Louis Navelier, allowed the digital gold rate to return to $10,000, drawing attention to the hype around the cryptocurrency.
In January, the head of DoubleLine Capital, Jeffrey Gundlach, called bitcoin too expensive in light of the upcoming tightening. Fed monetary policy and offered to buy it to wait for the price to drop to $25,000.