Bitcoin and Ether peaking towards $100K and $5K in 2022: Bloomberg analyst
According to the latest Bloomberg analyst, although cryptocurrency markets would be dropping to multi-month lows, major crypto tokens such as Bitcoin (BTC) and Ether (ETH) are more likely to hit new all-time highs in the year 2022.
BTC and ETH would be heading toward $100,000 and $5,000 in 2022, respectively, as predicted by Bloomberg Intelligence analyst, Mike McGlone who published his latest market analysis for the year on January 6.
McGlone noted that a key issue that is witnessed is as the Federal Reserve faces the biggest inflation in four decades, it is tending towards increasing interest rates if risk assets continue to climb.
In the report, McGlone has also predicted that Bitcoin, Ether and United States-pegged stablecoins would maintain their dominance in 2022, while some top 2021 winners, including Binance Coin (BNB) and Solana (SOL), might halt the pattern of “temporary visitors among the top five.”
According to the analyst, expectations for rate hikes in the Fed. in 2022 might also support a “win-win scenario” for Bitcoin versus the stock market, wherein Bitcoin is likely to gain the “upper hand” versus stocks this year.
He also wrote that crypto assets are currently the tops among speculative and risky, but the first born has been rapidly transitioning toward becoming the global digital reserve asset.
The latest Bloomberg Intelligence report has also followed similar previous forecasts by McGlone. In the first weeks of December 2021, the analyst had predicted that 2022 would be good for both Bitcoins and gold, predicting that both of them would hit $100,000 and $2,000, respectively.
Before this, he had successfully forecasted the approval of the first Bitcoin exchange-traded fund in the United States back in October 2021.
However, McGlone is not the only one who is thinking that Bitcoin can potentially hit $100,000. In the latest it has written to investors, the Co-head of global FX and EM strategy at Goldman Sachs, Zach Pandl, has suggested that Bitcoin has the potentials of overtaking 50 per cent of the store of value market share in the next five years, with Bitcoin price potentially surging over $100,000 by capitalizing on gold’s market share.
While writing this news piece, Bitcoin had been trading at $41,873, which is down around 11 per cent over the last one week, as per data from CoinGecko.
Cointelegraph has reported that Bitcoin has started dropping after the Fed’s December FOMC meeting held on Wednesday, January 5, where it showed that the regulator was committed to increasing interest rates this year.
The market has also been shrinking as a response to major internet blackouts in Kazakhstan amid local anti-government protests.