The senior Commodity Strategist at Bloomberg, believes crypto is THE topic next year. According to his report, in 2022, the US can expect massive adoption of cryptocurrencies with proper regulation and a subsequent bull market.
Cryptocurrency price prediction for 2022 by Mike McGlone
According to McGlone, the growth of cryptocurrencies in 2021 is associated with the monetary policy of developed countries, which sought to mitigate the economic crisis amid the pandemic. McGlone is confident that in 2022 the US Federal Reserve will curtail the emergency stimulus program amid rising inflation and the labor market. This decision will contribute to the growth of Bitcoin and Ethereum. He also noted that Bitcoin (BTC) remains capable of hitting the $ 100,000 mark next year:
“We expect the US to recognize cryptocurrency and introduce proper regulation in 2022, which will have a bullish impact on prices. An unlimited supply of fiat currency should support price increases, especially in the case of bitcoin and ether, the supply of which is limited.”
Inflation and Cryptocurrency: 2022 predictions
Bitcoin price has corrected more than 30% from its all-time high over the past couple of weeks. This is part of an overall market correction that is causing Bitcoin to hover below $ 50,000. Despite this, the world’s most popular cryptocurrency is trading at double or 100 percent compared to the beginning of the year. The situation that has developed as a result of incentive payments contributes to the growth of the cryptocurrency market in 2022. A similar scenario is observed in all global markets and among assets of all types.
However, in 2022, the Fed will begin tapering, a process of gradually reducing stimulus. On the other hand, fears about inflation have been growing lately. However, McGlone believes that this will have a positive impact on Bitcoin and the crypto market in general:
“The renewed desire by the Federal Reserve to remove the stimulus for the economy and reduce bond yields may indicate that the macroeconomic environment in 2022 will favor the leading cryptocurrencies Bitcoin and Ether. The observed divergence of crypto assets from stocks at the end of 2021 may herald the further dominance of digital assets as early as 2022.”
The US Stock Market’s influence on Bitcoin in 2022
In addition, the US stock market remains volatile in December.
This is due to a combination of factors such as a pullback in stimulus from the Fed and concerns over the spread of the omicron coronavirus strain and the likelihood of new lockdowns. Here’s what McGlone said to that:
“The primary force that will change expectations for the Fed’s tightening in 2022 is the stock market crash, which could be a win-win scenario for Bitcoin ,” McGlone said.
According to the expert, bitcoin is moving towards the $ 100,000 mark and “is confidently moving towards becoming a digital store of value,” like gold . “We see it more as a matter of time, in particular, because of the economic underpinnings of an increase in demand versus a decrease in supply.”
But what Ethereum Price in 2022?
Contrary to the opinion of market analysts, McGlone is not overly optimistic about Ethereum and considers his estimate to be overstated.
However, he thinks Ethereum will continue to remain in the $ 4,000 to $ 5,000 range.
Ethereum Blockchain 2.0 Prediction
Speaking about the long-awaited transition of the Ethereum blockchain to Ethereum 2.0 , McGlone said:
“Ethereum will enter 2022 amid growing adoption and declining supply, although it has undergone a significant correction this year. The key question is how overpriced should prices be for a pullback to occur, and how deep support cryptocurrency number two might fall until it finds buyers. ” The expert also added that “the $ 4,000 mark could be a watershed moment for ETH in 2022.”