In a recently published report, Bloomberg intelligence analyst Mike McGlone asserted that Bitcoin is set to have a solid 2022.
While cryptocurrencies are generally perceived to be risky, Bitcoin has the advantage of being the first mover in the space, thus being the most established of the digital currencies.
McGlone expects Bitcoin, Ethereum, and crypto dollars to remain dominant throughout 2022.
With the Federal Reserve considering hiking interest rates, there is significant speculation about which assets will fare well and which will underperform.
According to McGlone, if the S&P 500 stays low for an extended period, Bitcoin is expected to stay ahead of other assets.
Bond prices and gold are expected to rise as well. However, of these three assets, Bitcoin will still be the most volatile.
So-called “meme coins” like Dogecoin and Shiba Inu, which rose significantly in 2021, are expected to recede in price in 2022.
In 2021, Bitcoin experienced a significant surge in price. At its peak in October, Bitcoin was valued over $61,000.
McGlone noted that “Bitcoin withstood an unprecedented plunge and subsequent recovery in its hash rate in 2021, which should solidify the crypto’s price foundation for 2022.”
He alluded to Bitcoin’s hash-rate dropping about 30% in 2018, a time when Bitcoin’s price hit a floor of around $3,000.
McGlone added, “In 2021, the drawdown to about $30,000 from $60,000 supports our view that the crypto should continue to appreciate in 10x increments.”
The Bloomberg intelligence analyst believes that the 2021 hash-rate crash has solidified Bitcoin’s price foundation the same way it did in 2018.
Among certain segments of the financial space, there is an optimistic outlook for Bitcoin 2022.
Dallas Express previously reported that financial giant Goldman Sachs predicted Bitcoin to reach $100,000 within the next few years.