Bloomberg analyst Mike McGlone is convinced Bitcoin is on track to hit $100,000 in 2022 as it makes its transition from a risk-on to a risk-off asset.
While the Fed plans to hike interest rates to fight inflation, risky assets like crypto could suffer as people would likely prefer to invest in fixed income assets like bonds.
While this trend could pose a short-term hurdle, McGlone said he’s confident Bitcoin will still appreciate significantly in 2022:
“Bitcoin is, in my view, in a unique phase of transition from a risk-on to a risk-free global digital store of value, replacing gold and becoming a global security. So I think that’s going to happen this year.”
He said he viewed the current bearish sentiment as a positive sign, pointing to market consolidation.
The analyst is also bullish on Ethereum as it plays a key role in providing the main infrastructure for decentralized finance and non-fungible tokens (NFTs). He is also convinced that USD-backed stablecoins will increase sharply in 2022.
However, McGlone’s outlook for the broader crypto market is not so optimistic given the large number of speculative bets in altcoins.
“Simple economic rules do not favor prices in a market where there is unlimited supply and easy access. This is the crypto market”.
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