Mike McGlone, a Bloomberg analyst, believes Bitcoin will reach $100K by 2022 as it transitions from a risk-on asset to a risk-off one.
The Fed plans to increase interest rates to combat inflation. However, crypto risk-on assets may be affected as people will likely prefer to invest only in fixed-income assets such bonds.
McGlone stated that while this trend might be a temporary problem, he believes Bitcoin will appreciate significantly in 2022.
“Bitcoin is currently in a unique phase. It’s moving from a global digital store value that is risky to a global digital store of risk, replacing gold, and becoming global collateral. This year, I believe that will be the case.
He stated that he views the current bearish sentiment in market consolidation as a positive sign.
An analyst also believes in Ethereum because of its central role in decentralized finance and nonfungible tokens (NFTs). He believes that USD-backed stable currencies will continue to grow in 2022.
McGlone’s outlook on the crypto market is less optimistic due to the high number of speculative bets made among altcoins.
“Simple economic rules do not favor the prices of a market with an unlimited supply or ease of entry. This is the crypto market.
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