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 value heights.
In a tweet printed on Thursday (December 9), McGlone, who’s Bloomberg’s senior commodity strategist, printed 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 increased costs for Bitcoin and gold.
The Bloomberg analyst gave a tentative value prediction of $100,000 for BTC, $50 for oil and $2,000 for gold.
McGlone’s tweet adopted a earlier submit (despatched out on December 3) outlining a attainable deflationary course for the economic system subsequent 12 months. He famous crude oil costs had been much like these simply earlier than the 2008 international monetary disaster.
McGlone additionally printed his December edition of Bloomberg’s International Cryptocurrency Outlook, making a bullish case for each Bitcoin and Ethereum. He stated growing demand within the face of declining provide has positioned Ethereum on the “epicenter” of digitalization of finance and cash.
In accordance with McGlone, cash managers at the moment are going through “better dangers” by persevering with to have portfolios devoid of crypto, exhibiting 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 selection however to hitch in. We see this course of enjoying a main function in 2022, as cash managers might face better dangers in the event that they proceed to haven’t any portfolio allocations to cryptos.“
The views and opinions expressed by the creator, or any folks 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 danger of economic loss.