Bloomberg analyst Mike McGlone is satisfied Bitcoin is on observe to succeed in $100K in 2022, because it completes its transition from a risk-on to risk-off asset.
Whereas the Fed is planning to boost rates of interest to battle inflation, risk-on property like crypto could undergo, as folks would doubtless choose to put money into fixed-income property like bonds.
Whereas this development could signify a short-term hurdle, McGlone stated he’s assured that Bitcoin will nonetheless respect considerably in 2022:
“Bitcoin is in a novel part, I believe, of transitioning from a risk-on to risk-off world digital retailer of worth, changing gold and turning into world collateral. So I believe that is going to be occurring this 12 months.”
He stated he considers the present bearish sentiment as a optimistic signal, indicating market consolidation.
The analyst can also be bullish on Ethereum, given its key function in offering the principle infrastructure for decentralized finance and nonfungible tokens (NFTs). He’s additionally satisfied that USD-backed secure cash will proliferate in 2022.
McGlone’s outlook for the broad crypto market is just not as optimistic, although, given the big variety of speculative bets amongst altcoins.
“Easy guidelines of economics don’t favor costs of a market the place there’s a limiteless provide and ease of entry. That is the crypto market”.
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