According to forecasts Mike McGlone, analyst at Bloomberg Intelligence, this year the first cryptocurrency will outperform stocks. Despite the fall in the cryptocurrency market for several months, major cryptoassets like bitcoin (BTC) and ether (ETH) are expected to reach new ATHs in 2022, says the expert.
An encouraging forecast
This year bitcoin and ether will hit new highs of $ 100,000 and $ 5,000 respectively, according to forecasts by Bloomberg Intelligence analyst Mike McGlone, published Thursday in his latest market analysis.
“We believe the Federal Reserve, facing the highest inflation in four decades, will be more inclined to raise interest rates if risky assets continue to rise.”, noted McGlone.
McGlone also predicted that US-indexed BTC, ether and stablecoins will maintain their dominance in 2022, while some of the 2021 winners like Binance Coin (BNB) and Solana (SOL) “Could cease to be among the five most traded cryptocurrencies according to CoinMarketCap”.
The rate hikes the Fed is likely to impose in 2022 could support a “Win-win scenario” for bitcoin versus the stock market. This means that digital gold is highly likely to outperform stocks.
“Digital assets are among the most speculative and risky, but bitcoin is in the midst of a transition to become the world’s digital reserve asset”McGlone wrote.
Analysts weren’t wrong before
Bloomberg Intelligence’s latest analysis follows similar earlier predictions from McGlone. In early December 2021, the analyst predicted 2022 to be a good year for bitcoin and gold, predicting they would hit the $ 100,000 and $ 2,000 mark, respectively. Previously, he successfully predicted the approval of the first Bitcoin exchange-traded fund (ETF) in the United States in October 2021.
McGlone isn’t the only one who believes the first cryptocurrency could potentially reach this price. In the latest note to investors, Goldman Sachs co-chief strategy officer Zach Pandl suggested that the total value of bitcoin could exceed 50% of the store of value market over the next five years. The price of BTC would potentially exceed $ 100,000, as the first cryptocurrency partially replaced gold as a store of value.
At the time of writing, bitcoin is trading at $ 41,873, falling about 11% in the past seven days, according to data from CoinGecko. The price of the first cryptoasset started to fall after the meeting of the Federal Open Market Committee (FOMC) of the Fed, which showed that the regulator is committed to raising interest rates in 2022. The market also shrank in response to internet blackouts in Kazakhstan amid local anti-government protests.
Either way, analysts still have confidence in bitcoin. Even against the backdrop of market crises and downturns, it should be noted that the leading cryptocurrency still outperforms when you least expect it. While waiting for these predictions to come true, we suggest that you stay on Cointribune in order to be up to date!
Source: Cointelegraph
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Salome Guerin
If cryptocurrencies are synonymous with financial freedom, then they must play a key role in the financial empowerment of women. With the right education, crypto can be a powerful tool in fighting the battle against gender inequalities.
