Bloomberg’s senior commodity strategist thinks both Bitcoin (BTC) and Ethereum (ETH) are primed to surge in 2022 despite the crypto market’s recent struggles.
In a new analysis, Mike McGlone says both BTC and ETH have solid bases to build on. He predicts they will remain dominant among cryptos in 2022, with Bitcoin moving toward $100,000 and Ethereum breaching $5,000.
McGlone thinks Bitcoin is in a “consolidating bull market” and predicts the US Federal Reserve’s new policies will actually be beneficial for BTC.
Federal Reserve officials have recently indicated they plan to scale back asset purchases and raise interest rates next year in an effort to fight inflation.
Explains the Bloomberg analyst,
“Expectations for Federal Reserve rate hikes in 2022 may support a win-win scenario for Bitcoin vs. the stock market… A reason to take back liquidity is the fact that the S&P 500 is the most extended above its 60-month moving average in over two decades.
Stretched markets have become common, but commodities and Bitcoin appear to be early reversion leaders.
It’s a question of bull-market duration, and we see the benchmark crypto coming out ahead.”