Bloomberg's Mike McGlone said new US Fed policies will help bitcoin grow over stocks. He expects BTC and ETH price to jump to US$100k and US$5k. Know more.
Bloomberg's Mike McGlone has said in a recent report that despite the recent plunge in the price of Bitcoin (BTC), it’ll dominate the cryptocurrency space in 2022. He believes that the new policies of the US Federal Reserve will help bitcoin and the larger cryptocurrency market to grow. McGlone said, “expectations for Federal Reserve rate hikes in 2022 may support a win-win scenario for Bitcoin vs. the stock market.”
While explaining his logic behind such enthusiasm about BTC and the cryptocurrency market, he said that decline in risk assets help in fighting Fed’s inflation. In such a scenario, Bitcoin will be the greatest beneficiary when it becomes a global reserve asset. When inquired about his prediction about BTC surpassing stocks’s performance, he said:
“Expectations for Federal Reserve rate hikes in 2022 may support a win-win scenario for Bitcoin vs. the stock market… A reason to take back liquidity is the fact that the S&P 500 is the most extended above its 60-month moving average in over two decades”
He believes that the largest cryptocurrency withstood a massive fall in the hash rate in 2021 following the mining ban by Chinese authorities. According to McGlone, this solidified the price foundation of BTC for 2022. The Bloomberg report predicted the price of Bitcoin and Ethereum (ETH) to increase to US$100,000 and US$5,000 respectively.
McGlone went on to say that the BTC price bottomed in 2018, which was at a time when the 10-day average of bitcoin’s hash rate dropped by around 30%. In 2021 also, the price of BTC bottomed at the US$30,000 price level after it came tumbling from the then US$60,000 range. This indicated that the largest crypto will continue its 10x appreciation in price.
McGlone also said:
“Bitcoin mining has shifted to North American publicly traded companies, many of which are more inclined to hold coins, not sell them. Investors in the miners gain indirect exposure to cryptos."