Bloomberg senior commodities strategist Mike McGlone believes that bitcoin is completing its transition from a risky asset to a riskless asset, and this will help push the value of BTC to $100,000.
Cryptocurrency as a risky asset may suffer in 2022 from an increase in the US Federal Reserve’s key rate, the analyst believes. In such a situation, investors are likely to prefer to invest in fixed income securities such as bonds. However, this will be the only obstacle to Bitcoin reaching its $100,000 goal:
“Bitcoin is in a unique phase of transition from an international digital reserve asset that protects risk capital to a risk-free asset that will replace gold and become a global lending tool. I think it will happen this year.”
McGlone added that the current bearish sentiment is a positive sign that the market is consolidating.
The analyst is also optimistic about Ethereum, given its key role in providing the core infrastructure for decentralized finance and non-fungible tokens. McGlone is also convinced that US dollar-backed stablecoins will become widespread around the world in 2022.
In relation to the cryptocurrency market as a whole, the forecasts of the Bloomberg analyst are not very optimistic. He believes that growth is largely hampered by the huge number of speculative transactions in the altcoin market. Traditional economic practices used in the crypto industry have a negative impact on the value of cryptocurrencies and prevent new investors from entering the market.
It is worth noting that the forecasts of Bloomberg senior commodities strategist Mike McGlone changed in just a month. In December, he argued that the “bull market” for bitcoin was not over and that BTC could reach $70,000 in the near future. The analyst predicted that mass adoption of cryptocurrencies would begin in the US in 2022. This will entail the need for state regulation and the subsequent growth of the market.
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