Bloomberg has released a report with a prediction that Bitcoin is expected to hit $100,000 by 2022.
A decline in price that will only be temporary? A new report from Bloomberg Intelligence estimates that 2022 will be “bullish” for Bitcoin (BTC) and that cryptocurrency is heading towards $100,000. Update on this prediction.
The global adoption of cryptocurrencies drove a breakthrough in digital assets.
The Bloomberg Intelligence report points to several factors that could favour a rise in the price of Bitcoin in 2022. The current landscape has been greatly changed since the start of the year: China has banned the mining of cryptocurrencies and previously confidential technologies. (non-fungible/NFT tokens in particular) have come to the fore.
As a result, for Bloomberg, cryptocurrencies will continue to gain traction and reach a wider audience next year:
“We expect the United States to seize cryptocurrencies in 2022, with real regulations and ‘bullish’ consequences on the price.”
The report notes that in 2021, the cryptocurrency industry began to decorrelate from the equity market. And if the separation is not yet clear, the trend will continue next year:
“The benchmark crypto, which is becoming a digital store of value, remains in a “price discovery” mode. As a result, Bitcoin will encounter initial difficulties if the stock market falls, but crypto could ultimately become a primary beneficiary.”
Bitcoin: a haven in the face of the falling dollar?
Bloomberg expects the Federal Reserve’s key rates to be raised over the year, which would help establish Bitcoin as a viable alternative to the dollar.
The analysis notes that a major driving factor for BTC will be the unlimited issuance of fiat currencies. As governments – especially the United States – inject money artificially to support a battered economy, Bitcoin and its cronies appear stronger:
“We expect wider adoption to prevail and outshine most issues, such as the nearly 50% fix seen in 2021.”
A Bitcoin at 100,000 dollars in 2022
Hence a somewhat optimistic price prediction from Bloomberg Intelligence. The analysis believes that recent movements in Bitcoin’s price are not a sign that it has peaked. Instead, it would be a phase of consolidation of the bull market, which extends over the longer term.
“Bitcoin appears to be on a path towards $100,000. We see Bitcoin heading into 2022 with a bull market that has taken a hiatus and has been renewed.”
Moreover, according to the analysis, the largest cryptocurrency will not be the only one to benefit from a positive year. Bloomberg Intelligence notes that the “three musketeers,” namely Bitcoin, Ether (ETH) and “crypto-dollars”, as he modestly calls them, will continue to find their way into investor portfolios.