Even though the crypto market has fallen to multi-month lows, major cryptocurrencies such as Bitcoin (BTC) Y Ether (ETH) reach new all-time highs in 2022, according to a Bloomberg analyst.
BTC and ETH will head towards $ 100,000 and $ 5,000 this year, respectively, as predicted by the Bloomberg Intelligence analyst, Mike McGlone, in its latest market analysis published Thursday.
“A key point that we see is that the Federal Reserve, faced with the highest inflation of the last four decades, is more inclined to raise interest rates if risk assets continue to rise,” McGlone pointed out.
McGlone also predicted that BTC, Ether and stablecoins pegged to the US dollar will maintain their dominance in 2022, while some of those that rose the most in 2021, such as Binance Coin (BNB) and Solana (SOL), “could end their temporary visit to the top five in the market.”
According to the analyst, expectations of Fed interest rate hikes in 2022 could support a “win-win scenario” for Bitcoin versus the stock market, with the star cryptocurrency likely gaining a “lead” against stocks this year.
“Cryptoassets are on top of the speculative and risky, but the firstborn is fast becoming the world’s reserve digital asset,” wrote McGlone.
The latest Bloomberg Intelligence analysis follows similar earlier forecasts from McGlone. In early December 2021, the analyst predicted that 2022 would be good for both BTC and gold, forecasting that they would hit $ 100,000 and $ 2,000, respectively. He previously hit the mark on the approval of the first BTC exchange-traded fund in the United States in October 2021.
McGlone isn’t the only one who thinks that BTC could hit $ 100,000. In his latest note to investors, Goldman Sachs Co-Head of Global Currency and Emerging Markets Strategy Zach Pandl suggested that Bitcoin could exceed 50% of the market share of stores of value in the next five years, and that the price of the cryptocurrency could exceed USD 100,000 by subtracting market share from gold.
At the time of writing, BTC is trading at $ 41,873, which is down about 11% over the past seven days, according to data from CoinGecko. As we previously told you, BTC began to fall after the Fed’s December FOMC meeting showed on Wednesday that the regulator was committing to increase interest rates in 2022. The market has also retreated in response to the restriction of the Internet access in Kazakhstan amid local anti-government protests.