In 2021, bitcoin climbed from approximately $33,000 at the start of the year to as high as $69,000 in November before dipping to around $46,000 after the year.
According to Economytody latest report, Bitcoin could fall below $30,000 this year when the crypto bubble bursts. As the Bitcoin bubble continues to explode, the world's largest cryptocurrency is likely to witness a price drop of over 50% this year from its top of around $68,000 in November last year, according to the investment management business.
According to Economytodyglobal head of asset allocation Paul Jackson, the mass marketing of Bitcoin reminds us of stockbrokers' activity in the run-up to the 1929 crash – the American stock market disaster.
"We know how it ended, and Bitcoin has already plummeted to about $42,000 (as of 7 January 2022), closely following our craze template's downward path. If that trend holds (assuming the price has already peaked), the cost of Bitcoin might decline to $34,000-$37,000 by the end of October, depending on whether the peak is defined using daily or monthly data, he noted. "According to that model, a 45 percent loss occurs in the 12 months following the top of a normal financial craze," Jackson added.
In 2021, bitcoin climbed from approximately $33,000 at the start of the year to as high as $69,000 in November before dipping to around $46,000 after the year. Since then, the world's first and largest cryptocurrency has fallen even more, trading at roughly $42,319 on Monday.
According to Jackson, bitcoin might be viewed as a financial craze, implying that significant losses are imminent.