HomeCryptoBitcoin and Ether heading $100K and $5K in 2022: Bloomberg Intelligence

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 accordance with a Bloomberg analyst.

BTC and ETH might be heading towards $100,000 and $5,000 this 12 months, respectively, Bloomberg Intelligence analyst Mike McGlone forecasted in his newest market evaluation printed 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 preserve 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 might assist a “win-win scenario” for Bitcoin versus the inventory market, with BTC seemingly 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 could 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 in the United States in October 2021.

McGlone isn’t alone in pondering that BTC might probably hit $100,000. In the newest notice to buyers, Goldman Sachs co-head of worldwide FX and EM technique Zach Pandl advised that Bitcoin might overtake 50% of the shop of worth market share over the subsequent 5 years, with BTC value probably 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 accordance with information 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.