The cryptocurrency market crashed again on Friday (22/1). The price of bitcoin had dropped by 15%, ether was even worse up to 20%. Selling pressure does not seem to be going away, because Bitcoin is predicted to continue to decline to below US$ 30,000/coin, because there are similarities to the crash that the United States stock market (Wall Street) experienced in 1929.
Launching data from Coin Market Cap in the last 24 hours until 10:35 WIB, Bitcoin recorded a decline of 7.2% to US$ 36,613.65/coin or around Rp 520.4 million/coin (exchange rate of Rp. 14,335/US$). In the last 7 days the cryptocurrency with the largest market capitalization in the world has fallen by more than 15%.
Meanwhile, ether, which has the second largest market capitalization in the world, fell almost 9% in the last 24 hours to US$ 2,591.66/coin or around Rp. 37 million/coin. In 7 days, ether slumped more than 21%.
Other crypto assets, such as BNB and Solana in the last 7 days are down more than 20%, while XRP is minus 17% and Cardano is down 11%.
Ivesco, an investment company based in Atalanta United States (USA) sees Bitcoin will fall below US $ 30,000/coin because there are similarities to the Wall Street crash in 1929. The similarity lies in the massive promotion of the same crypto that was carried out brokers in the United States before Wall Street crashed.
“The massive marketing of bitcoin reminds us of the brokerage activity that triggered the Wall Street crash of 1929,” said Paul Jackson, Invesco’s head of asset allocation.
“We think bitcoin has fallen below $30,000/coin this year,” he added.
Jackson said the probability of a bitcoin crash going below $30,000/coin is 30%.
Previously, UBS analysts said the crypto market was at risk of experiencing a “winter” aka decline then stagnate for years.
The previous “winter” crypto occurred in 2018, when bitcoin price collapsed by more than 70%, then stagnates and tends to decline until April 2019.
The UBS analyst team led by James Malcolm said a hike in the US central bank’s (The Fed) interest rate this year would reduce bitcoin’s appeal.
In addition, Malcolm also stated that crypto investors are now starting to see bitcoin as not a “better virtual money”, because it has high volatility.
From the record high reached on November 10 last, above US$ 68,000/coin, to this day bitcoin has fallen more than 46%.
In addition, another risk factor for triggering the crypto winter is the possibility of government regulations in various countries.