Bloomberg Intelligence senior commodities strategist Mike McGlone reaffirmed his earlier predictions. Keep waiting for Bitcoin to hit $100,000 and Ether to hit $5,000.
While Bitcoin struggles to go back above $50,000, the market continues to make predictions about what the price of the main cryptocurrency will be in the coming months. According to Bloomberg, it would reach $100,000.
The recent declines in the cryptocurrency market mean that both Bitcoin and altcoins maintain weak buying activity, despite several oversold signs on the charts. This fact dynamites investor optimism as it reduces the possibility of a significant price increase heading into January, especially given the loss of upward momentum in the weekly and monthly charts. But one of the most followed analysts in the crypto community has renewed his bullish predictions.
Bloomberg’ Intelligence senior commodities strategist Mike McGlone reaffirmed his previous price predictions for both bitcoin and the number two cryptocurrency by market capitalization, Ether.
He keeps waiting for the first one to reach $100,000, while he sees the ether – a unit of the Ethereum network – at $5,000.
“We expect the United States to embrace cryptocurrencies in 2022, with proper regulation and related bullish price implications,” states McGlone in his latest report, adding that “the unlimited supply of fiat currency should sustain rising prices, especially on bitcoin and ethereum, which are in limited supply.”
The price of Bitcoin, Ethereum, and most major cryptocurrencies have skyrocketed, in part due to massive monetary stimulus measures undertaken by the United States Federal Reserve and other central banks around the world, which have fueled the price of stocks and assets in general.
However, rising inflation and a strong US job market could cause the Federal Reserve to reduce its stimulus program in 2022, leading to a sentiment of aversion to risky assets. However, according to McGlone, it could mean that the price of bitcoin and ethereum continued to rise even as stock markets fell, as it “may point to a macroeconomic environment in 2022 that favors major cryptocurrencies.”
“Cryptoassets showing divergent strength versus equities near the end of 2021 may herald continued performance on digital assets in 2022.” In fact, the expert believes that a fall in the stock market would be “profitable for bitcoin”, which “appears to be on a trajectory towards $100,000”, and “on the way to becoming a digital store of value”, similar to the gold.
“We see it more as a matter of time, mainly due to the economic fundamentals of increasing demand versus decreasing supply,” concludes McGlone.
