The outlook for Bitcoin in 2022 is highly bullish, according to Bloomberg Intelligence. In its latest report, BI claims that Bitcoin seems to be settled on a trajectory leading to $ 100,000 in the coming year. In addition, it aims to become “global digital security”.
The report currently describes the situation at Bitcoin (BTC) as a consolidating bull market. Its authors expect this trend to continue next year as Bitcoin breaks out of the $ 40,000 to $ 70,000 range. He thinks this is because the market has largely got rid of all the factors that played a role in its 50% downward correction earlier this year, especially the mining ban in China.
Bloomberg: $ 100,000 for Bitcoin next year
After reaching $ 70,000, Bitcoin should head to $ 100,000 for coins next year. Bloomberg analysts see this scenario as a consequence of supply and demand in the bitcoin market. The report states:
“Bitcoin appears to be on a trajectory of $ 100,000. We see this more as a matter of time, especially because of the economic underpinnings of growing demand versus declining supply. “
The fact that Bitcoin is moving towards more mainstream acceptance in many countries, including the USA, Canada, El Salvador and throughout Europe. He expects that when rising acceptance and awareness are combined with declining volatility and Bitcoin emissions, the price will inadvertently rise.
Another factor that should play a key role in increasing the attractiveness of investments in Bitcoin is the greater clarity of regulation and adjustment of US monetary policy. The report said that next year the US could become more open to cryptocurrencies, as severalmore detailed legislation for this sector.
He added that a situation in which the Federal Reserve’s move to tighten monetary policy would lead to a stock market crash could ultimately be very favorable for Bitcoin.
“The main force that will reverse the expectations of a tightening of the Federal Reserve in 2022 is the decline of the stock market, which may be a bit of a win for Bitcoin. […] in a situation where falling stock prices are pushing bond yields and motivating central banks to be more liquid, the cryptocurrency may emerge as the biggest winner “
Conclusion
The authors also focus on the second largest digital currency, the Etherium (ETH). Here, too, they are very optimistic in their predictions for 2022. He claims that the $ 4,000 price for ETH, which was once a level of resistance, is now its level of support, “and can act as a key pivot for 2022.” Nevertheless, BI warns that the price of Etherea may fall by as much as 60% in the first half of 2022 before continuing to rise.
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