“Bitcoin Will Hit Notable Highs,” Bloomberg Analysts Say

  • Bloomberg analysts believe that a global recession boosts the price of Bitcoin.
  • Alistar Milne believes that the value of Bitcoin will reach $45,000 with the favor of inflation.
  • The probability that the Federal Reserve and the world’s central banks will cut interest rates is high.

With 2022 Bitcoin has had, it has not been able to convince the big players in the market to predict if it will have a promising career in this new year. Research platform Bloomberg has maintained a bullish outlook on the flagship coin and is presenting notable reasons why the asset is poised to experience rapid growth in the new year.

Global Recession will be Bitcoin Booster

In the latest insights from Bloomberg analysts, they review the impact the global recession would have on Bitcoin and other cryptocurrencies.

“The growing potential for a severe global economic shutdown may be a driver of crypto outperformance in 2023. Our bias is that Bitcoin will most likely come out ahead in most scenarios.”

Bloomberg explains.

It is important to emphasize that several recognized market agents share the same opinion regarding Bitcoin. With 2022 drawing to a close, predictions for the following year by traders and investors reflect bullish sentiment.

Altana Digital Currency Fund founder Alistair Milne is one such figure. Milne forecasted $45,000 for Bitcoin as inflation favors this asset.

According to the paper, the inverted yield curve, which shows that long-term interest rates are lower than short-term interest rates, is a likely indicator that economic progress will slow and would have ramifications for all assets.

As a result, Bitcoin could rally as high as $12,000 or as low as $10,000. This means that the asset, which at the time of writing is trading at $17,483, could lose between $4,490 and $6,940 of its current value. However, according to the study, it is expected to rise again.

Another eventuality that could differ from last year is that the Federal Reserve and central banks are forced to start “softening the deflationary effects of falling asset prices.”

If this comes to pass, Bitcoin could take another positive turn.

“In this Fed pivot scenario, Bitcoin is poised to transition to a digital version of gold and perform like the metal and long US Treasuries. A quick recovery from falling GDP and asset prices seems less likely.” 

Bloomberg states this conclusively.