The crypto market had a wild ride in 2021 even though the year-end prices did not express the grand predictions made by many investors and analysts. However, Bitcoin still experienced a 62% surge in price for last year as of December 21, 2021. A lot of altcoins also claimed to have triple-digit gains as the market flourished. Sixteen of the top 100 cryptocurrencies by market cap increased by quadruple digits and six – Polygon, Solana, The Sandbox, Ecomi, Axe Infinity, and Terra increased by over 100x. Which are all accessible with the use of the now in the internet.
Now that the new year is here, predictions for various digital coins are coming in and a Bloomberg analyst has made some bold predictions about Bitcoin and Ethereum. Undoubtedly, the crypto market has been bearish for some time now. However, major digital coins such as Ether and Bitcoin are predicted to make new all-time highs in this new year .
A Bloomberg analyst has claimed that Bitcoin and Ethereum will be mooning to $100,000 and $5,000 respectively this year. Mike McGlone, a Bloomberg Intelligence analyst has made this claim after publishing his recent market analysis. He noted that a primary obstacle the crypto market will face is the Federal Reserve as it battles its biggest inflation in 40 years. He added that the Federal Reserve will most likely increase its interest rates if risk assets continue to climb.
McGlone also forecasted that Ether, United States-pegged stablecoins, and Bitcoin will maintain their dominance this year. He went further to say that the top winners of 2021 like Solana and Binance Coin might follow the pattern of temporary visitors among the top five cryptos.
According to McGlone, prospects for the Fed rate hikes could be a win-win situation for Bitcoin versus the stock market this year. He claims Bitcoin is likely to gain the upper hand above stocks in 2022. The analyst wrote that crypto-assets rank top among the risky and speculative but Bitcoin is promptly transitioning to become the world’s top digital asset reserve.
McGlone’s latest forecast is in line with his previous analysis and prediction. Early December 2021, McGlone forecasted that 2022 would be a great year for Bitcoin and gold predicting each asset to hit $100,000 and $2,000 respectively. In the past, McGlone had successfully predicted the approval of Bitcoin’s first exchange-traded fund in the U.S. in October 2021.
Positive predictions for Bitcoin and Ethereum
McGlone is not the only one who believes that Bitcoin could reach the $100,000 mark. Zach Pandi, Goldman Sachs co-head of global FX and EM strategy, inferred that Bitcoin could surge by more than 60% of its store of value market share. He believes that by capitalizing on gold’s market share, Bitcoin’s price could increase to more than $100,000.
Several Australian investors also share the same stance with McGlone. Tony Sycamore, a City Index market analyst based in Sydney strongly speculates Ethereum breaking the $5,000 mark this year. Tony is banking his theory on the technical backdrop and the recent burn rate.
From his analysis, he believes the pullback from its all-time high price of $4868 to the flash crash low of $3470 only appears to be a market correction. And this is typically expected after a string bullish tend. Secondly, as a result of the diminished supply and burn rate of Ether follow-up the London hard fork, Tony believes Ethereum will make a new all-time high of $5,200.
The founder of the Gold Coast-based Crypto Den, Dave Haslop also believes bitcoin will reach the $100,000 price mark. A six-digit BTC he called it! He went on to say this will be achieved early to mid-2022 and not late into the year. Dave asserted that the weekly market structure is truly well and up and people just have short recollections.
Dave is fronting Bitcoin as a haven for wealth in the coming years as the world will see significant economic chaos shortly.
At the time of this writing, Bitcoin is trading at $43,980, up by around 0.9% in the past week according to data obtained from CoinGecko. A retest of the $45,000 mark is likely as Bitcoin will try to break to the upside. If not, the $40,000 support mark will be retested once again.