Bloomberg’s head commodity strategist says the crypto markets look poised for a bullish 2022, with Bitcoin and Ethereum set to lead the charge.
In the December edition of Bloomberg’s “Global Cryptocurrency Outlook,” Mike McGlone says that given crypto’s relative outperformance of other asset classes, many money managers may be forced to get involved.
“Past performance is no indicator of future results, but when a new asset class outperforms incumbents, naysayers have little choice but to join in. We see this process playing a primary role in 2022, as money managers may face greater risks if they continue to have no portfolio allocations to cryptos.”
McGlone says that BTC looks like it’s still on schedule to break the six-figure mark next year, partially on the back of rapid adoption from various economies and markets.
“Bitcoin appears to be on a trajectory for $100,000. We see it as more of a question of time, notably due to the economic basics of increasing demand vs. decreasing supply. There are ample examples of Bitcoin simply staying on course in 2022 of its process of adoption into the mainstream. U.S., Canadian and European exchange-traded funds and futures, migration into the 60/40 mix and legal-tender status in El Salvador point to a bull market in global adoption.”
The analyst says the digital asset markets are being driven by three main “stalwart” components, which are Bitcoin, Ethereum, and stablecoins, which he calls “crypto dollars.” According to McGlone, altcoins like Shiba Inu (SHIB) and Dogecoin (DOGE) show that the crypto markets are ripe for speculation, but that BTC, ETH, and USD-backed stablecoins will continue to maintain dominance.
In the long term, the commodity strategist says that Bitcoin could ultimately find a stable price somewhere in the neighborhood of 100x the price of an ounce of gold, which right now would be $178,300.
“A potential path for the Bitcoin price is to stabilize around 100x an ounce of gold and for volatility to resume its downward trajectory, if past patterns repeat.”
The full Bloomberg report can be read here.
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