Bloomberg Analyst Predicts Bitcoin May Reach $100,000 in 2022


Mike McGlone, a senior commodity strategist at Bloomberg’s research arm, shared his prediction that 2022 would be good for both Bitcoin and gold.

Bloomberg Intelligence analyst Mike McGlone states that an inflationary environment will prevail in global markets in 2022 and deflationary assets will rise in this environment. The senior Bloomberg analyst believes that when markets face high inflation, investors will turn to Bitcoin and gold investment as a safe haven.

Bloomberg predicts $100000 Bitcoin price 2022

Inflation, which is the main focus of the economic turmoil, is among the main reasons for the emergence of Bitcoin, as it is known. In fact, the leading cryptocurrency is often referred to as “ digital gold ” for this reason.

On the other hand, with inflation making headlines around the world this month, Bitcoin is currently 39% off its ATH. This leads to criticism of BTC's hedging role. However, for these criticisms to be valid, BTC's long-term course needs to justify the critics.

For Bitcoin's long-term course, Senior Commodity Strategist Mike McGlone, who tweeted on December 9, predicted that new ATHs for BTC could come. In the tweets he shared yesterday, the analyst stated that 2022 will be the year of gold and Bitcoin due to deflation and that oil will also be affected by this situation.

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The latest U.S. Consumer Price Index (CPI) data is due today, December 10, with analysts presuming that inflation will have sharpened 6.7% year-on-year.

Inflation expectations dominate the markets

Based on McGlone's analysis, it seems that gold will also rise next year. Gold, which has been criticized for underperforming against Bitcoin since the beginning of the year, seems ready to correlate with BTC. However, the wind that will blow from the macro markets is expected to carry Bitcoin higher.

Although the discussions will continue, there is a consensus on inflation. In fact, this consensus is not only shared by investors but also supported by the Fed. As a reminder, Fed Chairman Powell stated that inflation was permanent for a while in front of the cameras. As a result, almost all sides of the market share the idea that inflation will continue in 2022 and this seems to benefit deflationary assets.

"How long before investors realize that even if the Fed follows through with its inflation-fighting plan to taper QE and raise interest rates slightly in 2022, that it'll be too little too late to derail this inflation juggernaut?" gold bug Peter Schiff queried this week.

"If Powell doesn't get medieval, inflation will!"

Bitcoin stands out with its limited supply

As you may have known, Bitcoin stands out with its limited supply and offers a deflationary opportunity in an inflationary environment. The limited supply of BTC to 21 million has contributed to its rivalry with traditional markets and even faster growth until now.

This time, however, BTC is far from its ATH, raising questions. The recent price drop in the premier cryptocurrency has raised concerns about the asset's role in investors' portfolios. The growing concern of investors brings selling pressure with it. In fact, this situation is reflected on the indicators as a signal of extreme fear.

Investors are now in a hurry for the increased selling pressure in BTC and we are not yet at the end of the bull cycle.

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