According to Invesco strategist Paul Jackson, Bitcoin could end up seeing steeper losses this year.
Business Insider first reported Paul Jackson's prediction. Jackson has predicted that Bitcoin price could drop below the $30,000 level.
In addition, he sees a 30% chance of such a bearish scenario coming into reality as Bitcoin is still trading below $45,000.
Jackson said that this excessive exuberance in the cryptocurrency market reminds him of the period on the cusp of the Great Depression. He says,
"The mass marketing of bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash."
CoinMarketCap data shows that the largest cryptocurrency is trading at $42,221 at press time. Bitcoin is down 1.63% in the last 24-hour.
The hawkish pivot made the U.S. Federal Reserve one of the key headwinds for the largest crypto at the moment. The central bank is also expected to increase rates 3 times throughout this year, applying pressure on risk investments such as stocks and cryptocurrencies.
On the technical side, Bitcoin recently formed a “death cross.” Based on data, the much-feared chart pattern, which is considered to predict a significant correction, often manages to be a sluggish trader, with some traders seeing it as a buying chance.
Despite some bearish predictions, there’s no lack of bullish price predictions. Fundstrat’s Tom Lee, on the other hand, thinks that Bitcoin could reach $200,000 this year.
As miners keep investing more into the network, Max Keiser, said that this could help propel Bitcoin to as high as $220,000 this year.