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 price heights.
In a tweet published on Thursday (December 9), McGlone, who is Bloomberg’s senior commodity strategist, published his forecast for the next year, saying it would be good for both Bitcoin and gold as store-of-value assets benefiting from their position as hedges. McGlone pointed to peaking commodities and the declining yield on the U.S. Treasury long bond as catalysts for reviving “deflationary forces” in 2022, which would result in higher prices for Bitcoin and gold.
The Bloomberg analyst gave a tentative price prediction of $100,000 for BTC, $50 for oil and $2,000 for gold.
McGlone’s tweet followed a previous post (sent out on December 3) outlining a possible deflationary course for the economy next year. He noted crude oil prices were similar to those just before the 2008 global financial crisis.
McGlone also published his December edition of Bloomberg’s Global Cryptocurrency Outlook, making a bullish case for both Bitcoin and Ethereum. He said increasing demand in the face of declining supply has positioned Ethereum at the “epicenter” of digitalization of finance and money.
According to McGlone, money managers are now facing “greater risks” by continuing to have portfolios devoid of crypto, showing that Bloomberg’s Crypto Index is up 1200% since 2019 versus 90% for the S&P 500:
“Past performance is no indicator of future results, but when a new asset class outperforms incumbents, naysayers have little choice but to join in. We see this process playing a primary role in 2022, as money managers may face greater risks if they continue to have no portfolio allocations to cryptos.“
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.