Bloomberg Intelligence analyst Mike McGlone is bullish on the outlook for Bitcoin and Ethereum in 2022, saying “deflationary forces” will take the cryptoassets to new worth heights.
In a tweet revealed on Thursday (December 9), McGlone, who’s Bloomberg’s senior commodity strategist, revealed his forecast for the subsequent 12 months, saying it will be good for each Bitcoin and gold as store-of-value property benefiting from their place as hedges. McGlone pointed to peaking commodities and the declining yield on the U.S. Treasury lengthy bond as catalysts for reviving “deflationary forces” in 2022, which might lead to greater costs for Bitcoin and gold.
The Bloomberg analyst gave a tentative worth prediction of $100,000 for BTC, $50 for oil and $2,000 for gold.
McGlone’s tweet adopted a earlier publish (despatched out on December 3) outlining a attainable deflationary course for the economic system subsequent 12 months. He famous crude oil costs have been much like these simply earlier than the 2008 world monetary disaster.
McGlone additionally revealed his December edition of Bloomberg’s World Cryptocurrency Outlook, making a bullish case for each Bitcoin and Ethereum. He stated rising demand within the face of declining provide has positioned Ethereum on the “epicenter” of digitalization of finance and cash.
Based on McGlone, cash managers are actually going through “larger dangers” by persevering with to have portfolios devoid of crypto, displaying that Bloomberg’s Crypto Index is up 1200% since 2019 versus 90% for the S&P 500:
“Previous efficiency isn’t any indicator of future outcomes, however when a brand new asset class outperforms incumbents, naysayers have little alternative however to affix in. We see this course of taking part in a main function in 2022, as cash managers could face larger dangers in the event that they proceed to haven’t any portfolio allocations to cryptos.“
The views and opinions expressed by the writer, or any individuals talked about on this article, are for informational functions solely, and they don’t represent monetary, funding, or different recommendation. Investing in or buying and selling cryptoassets comes with a threat of monetary loss.