Bitcoin and Ether heading $100K and $5K in 2022: Bloomberg Intelligence
Despite cryptocurrency markets dropping to multi-month lows, main cryptocurrencies like Bitcoin (BTC) and Ether (ETH) are prone to hit new all-time highs in 2022, in line with a Bloomberg analyst.
BTC and ETH will likely be heading towards $100,000 and $5,000 this 12 months, respectively, Bloomberg Intelligence analyst Mike McGlone forecasted in his newest market evaluation published on Thursday.
“A key issue we see is the Federal Reserve, as it faces the greatest inflation in four decades, more inclined to raise interest rates if risk assets continue climbing,” McGlone famous.
McGlone additionally predicted that BTC, Ether and the United States-pegged stablecoins will keep dominance in 2022, whereas some prime 2021 winners just like the Binance Coin (BNB) and Solana (SOL) “may end the pattern of temporary visitors among the top five.”
According to the analyst, expectations for the Fed. price hikes in 2022 may assist a “win-win scenario” for Bitcoin versus the inventory market, with BTC probably gaining “upper hand” versus shares this 12 months.
“Crypto assets are tops among the speculative and risky, but the first born is rapidly transitioning toward becoming the world’s digital reserve asset,” McGlone wrote.
The newest Bloomberg Intelligence’s evaluation follows comparable earlier forecasts by McGlone. In early December 2021, the analyst predicted that 2022 can be good for each BTC and gold, forecasting them to hit $100,000 and $2,000, respectively. He beforehand efficiently predicted the approval of the primary BTC exchange-traded fund within the United States in October 2021.
McGlone shouldn’t be alone in pondering that BTC may doubtlessly hit $100,000. In the most recent observe to traders, Goldman Sachs co-head of worldwide FX and EM technique Zach Pandl recommended that Bitcoin may overtake 50% of the shop of worth market share over the subsequent 5 years, with BTC worth doubtlessly surging over $100,000 by capitalizing on gold’s market share.
Related: Brock Pierce and Tom Lee tip $200K BTC in 2022, regardless of lacking the mark in 2021
At the time of writing, BTC is buying and selling at $41,873, down round 11% over the previous seven days, in line with data from CoinGecko. As Cointelegraph reported, BTC began dropping subsequently after the Fed’s December FOMC assembly on Wednesday confirmed that the regulator was dedicated to rising rates of interest in 2022. The market has additionally been shrinking in response to web blackouts in Kazakhstan amid native anti-government protests.