A new report from investment management firm Invesco says that Bitcoin (BTC) could fall below $30,000 U.S. this year.
In its forecast, Invesco points to similarities between today's cryptocurrency marketing campaigns and the activities of stockbrokers in the run-up to the Great Depression of the 1930s.
“The mass marketing of Bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash,” writes Invesco. “We think it is not too much of a stretch to imagine Bitcoin falling below $30,000 this year.”
If cryptocurrency mania ends up following the pattern of other manias, the next few years will be volatile for the world's largest cryptocurrency, the note states.
Bitcoin reached an all-time high of $69,000 U.S. last November. Since then, it has been in consolidation mode, trying to hold above the $40,000 U.S. level but down nearly 40% from its peak. The largest cryptocurrency is currently trading around $41,900 U.S.
If Bitcoin is unable to hold the $40,000 U.S. support level, prices could decline to $34,000 U.S., Invesco said, warning that the selloff could accelerate in coming months.
Invesco is the latest investment company to speak about the potential of a deeper cryptocurrency selloff. Earlier this week, UBS (UBS) said there are growing signs of a “crypto winter,” adding that the upcoming Federal Reserve rate hikes will weigh on Bitcoin and its inflation-hedge appeal.
