Bitcoin and Ether heading $100K and $5K in 2022: Bloomberg Intelligence

According to a Bloomberg analyst, cryptocurrency markets have fallen to lows for several months. However, major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), are expected to reach new all-time highs by 2022.

According to a Bloomberg intelligence analyst Mike McGlone’s latest market analysis, ETH and BTC will reach $100,000 and $5,000 respectively this year.

McGlone stated that “a key issue we see in the Federal Reserve is it, as it faces inflation at its highest level in 40 years, more inclined than ever to raise interest rates if risks assets continue rising,” McGlone said.

McGlone also predicted BTC, Ether, and United States-pegged stabilizecoins would continue dominance in 2022. However, some top 2021 winners such as the Binance Coin (BNB), and Solana(SOL) may end the trend of temporary visitors among top five.

The analyst predicts that the Fed will raise rates in 2022. Rate hikes in 2022 could be a win-win situation for Bitcoin and the stock market. Bitcoin is expected to gain an “upper hand” over stocks this year.

McGlone stated that although crypto assets are a top choice among risky and speculative investors, the first to be born is quickly transitioning towards becoming the world’s digital reserve currency asset.

This latest Bloomberg intelligence analysis is similar to previous forecasts made by McGlone. The analyst had predicted that BTC and gold would see a boom in 2022, predicting them to reach $100,000 and $2,000 respectively. He had previously successfully predicted that the United States would approve the first BTC exchange-traded funds in October 2021.

McGlone isn’t the only one who believes that Bitcoin could reach $100,000. Zach Pandl, co-head of global FX strategy and EM at Goldman Sachs, suggested that Bitcoin could surpass 50% of the market share in the store of value over the next five year. He also said that BTC’s price could rise to $100,000 by capitalizing gold’s market share.

Similar: Brock Pierce and Tom Lee tip $200K BTC for 2022, even though they missed the mark in 2021

According to CoinGecko data, BTC trades at $41,873, a drop of around 11% in the last seven days. According to Cointelegraph, BTC began falling after Wednesday’s Fed FOMC meeting. This showed that the Fed was determined to increase interest rates in 2022. In response to the internet blackouts in Kazakhstan and local anti-government protests, the market has been shrinking.