Is Bitcoin Heading For A Collapse?

The has already reached its peak, and will likely decrease in value to around $30,000 by the end of this year — “Paul Jackson” (’s global head of asset allocation).

According to investment management firm, Bitcoin’s price is expected to drop by more than 50% this year as the cryptocurrency bubble begins to burst. Paul Jackson, the head of asset allocation at Invesco in the year 1929, compares Bitcoin’s broad marketing to that of stockbrokers in the 1920s prior to the Wall Street crash. Similar to the investment bubble in the 1920s, Bitcoin’s value has been pushed up by speculation without any fundamental basis.

Commenting on hike since its inception, Jackson said: “Bitcoin was created to operate outside of the authorities’ grasp, but if Bitcoin wants to be part of the mainstream it will have to comply with laws and regulations like all other financial instruments.” Jackson tells Bloomberg that Bitcoin is like a flashing stock sign seen only by cryptocurrencies enthusiasts. He adds that Bitcoin needs proper regulation for investors to trust it enough to trade their traditional currencies for cryptocurrency; otherwise, Bitcoin will never develop into anything more than an asset for speculators.

The Current State Of The Cryptocurrency Market

According to the Invesco study, Bitcoin does not provide any yield or inherent value to back up its price. Bitcoin has already fallen by 40% from its peak, and Bitcoin is now in a bubble that will soon burst. By mid-May, the price of one bitcoin had climbed to nearly $63,000 from around $9,000 in July 2020. After declining to less than $30,000 in July 2019, Bitcoin’s value appears to have stabilized. The price for a single bitcoin rose to about $68,000 in November and has been declining since then.

Since Bitcoin offers no dividends or interest rates, Bitcoin offers nothing for traditional investors who seek yield to offset inflation. Bitcoin’s price volatility can lead to sudden drops as well as dizzying hikes, thus making Bitcoin an unreliable store of wealth for those looking for income.

Compared To The Report…

In late December, Goldman Sachs predicted that the Bitcoin price would increase in 2022. According to Goldman Sachs analysis, the cryptocurrency may rise up to $100,000 in five years as digital assets gain traction and supplant gold as a by-product of wider usage. The findings of Goldman Sachs contradict the Invesco report that predicts a massive fall in value. The results of both reports point out fundamental flaws in the cryptocurrency market, and it will be interesting to see what direction bitcoin and other cryptocurrencies take.

“Digital asset markets, on the other hand, are considerably larger than bitcoin.”-Goldman Sachs

A really called Mike Novogratz said that he thought Bitcoin would be worth more in the future. He said this because Bitcoin is still new and not many people know about it. In a, he said that while the market is volatile over the next few weeks, he isn’t worried in the long term about cryptocurrencies. “Some of it comes off” as the U.S. Federal Reserve becomes more dovish, according to Novogratz, who is a long-time Bitcoin bull.

According to him, cryptocurrencies are comparable to the early days of the internet, when they were only utilized by techies before expanding to a larger audience. Bitcoin has long been the most dominant cryptocurrency in the market, but it is now being challenged by Bitcoin Cash and Bitcoin SV as well as a slew of other cryptocurrencies.

The Bottom Line

Nowadays we are seeing a downward trend in the whole crypto market and Bitcoin is also going down. Bitcoin’s history shows that Bitcoin has faced many price drops and Bitcoin bubble bursts in the past. Bitcoin will definitely have its ups and downs but Bitcoin is not finished yet, Bitcoin may go down for some time but there are possibilities of



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