Despite cryptocurrency markets dropping to multi-month lows, major cryptocurrencies like Bitcoin (BTC) and Ether (ETH) are likely to hit new all-time highs in 2022, according to a Bloomberg analyst.
BTC and ETH will be heading toward $100,000 and $5,000 this year, respectively, according to a forecast by Bloomberg Intelligence analyst Mike McGlone published in his latest market analysis 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 noted.
McGlone also predicted that BTC, Ether and United States-pegged stablecoins will maintain dominance in 2022, while some top 2021 winners 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. rate hikes in 2022 could support a “win-win scenario” for Bitcoin versus the stock market, with BTC likely gaining “upper hand” versus stocks this year.
“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 latest Bloomberg Intelligence analysis follows similar previous forecasts by McGlone. In early December 2021, the analyst predicted that 2022 would be good for both BTC and gold, forecasting them to hit $100,000 and $2,000, respectively. Previously, he had successfully predicted the approval of the first BTC exchange-traded fund in the United States in October 2021.
McGlone is not alone in thinking that BTC could potentially hit $100,000. In the latest note to investors, Goldman Sachs co-head of global FX and EM strategy Zach Pandl suggested that Bitcoin could overtake 50% of the store of value market share over the next five years, with BTC price potentially surging over $100,000 by capitalizing on gold’s market share.
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At the time of writing, BTC is trading at $41,873, down around 11% over the past seven days, according to data from CoinGecko. As Cointelegraph reported, BTC started dropping after the Fed’s December FOMC meeting on Wednesday showed that the regulator was committed to increasing interest rates in 2022. The market has also been shrinking in response to internet blackouts in Kazakhstan amid local anti-government protests.