Since last week, Bitcoin has lost roughly 20% and is trending downwards, moving along with Ethereum, the second-largest cryptocurrency by value and at 15% lower than the previous week. Bitcoin, along with other cryptocurrencies, is under considerable pressure. Last weekend’s frenzy sell-off has sparked nervous bubble warnings.
According to an expert, Senior commodity strategist at Bloomberg Intelligence, Mike McGlone said that in 2022, with bullish price indications and proper regulations he expects the U.S. to embrace cryptocurrencies. He further added instead of a limited supply of Bitcoin and Ethereum, fiat currencies have an unlimited supply that could sustain rising prices. According to another expert, who has been watching the market closely with Ethereum hitting $5,000, and Bitcoin soaring at $100,000.
As enormous financial stimulus measures taken by the U.S.Federal Reserve and other central banks globally have fueled the price of stock markets across the board, Bitcoin, Ethereum, and other cryptocurrencies prices have risen sharply.
Mike McGlone thinks that the price of both Bitcoin and Ethereum will continue to increase even if the stock market takes a hit as the Federal Reserves could curtail its stimulus program in 2022 due to rising inflation and a strong U.S. jobs market.
Mike McGlone further wrote that as the Federal Reserves remove the fiscal stimulus and reduce the bond yields, it might point to a macroeconomic favoring Bitcoin and Ethereum, the top cryptocurrencies, in 2022.
Crypto assets performing differently than equities at the end of 2021 could indicate that digital assets will continue to outperform in 2022. Despite ever-growing inflation, the Federal Reserve advanced its stimulus package as the market wavered through December due to the new Covid-19 variant Omicron.
Even though the Federal Reserve reversal to the primary force in the market is comparatively small in 2022 in the stock market, it is, however a win-win situation for Bitcoin; Mike McGlone continued, Bitcoin might touch $100,000, becoming a digital store-of-value which is similar to gold.
It’s a matter of time and a decrease in supply against an increase in demand. Roughly 90% of all 21 million Bitcoin have already been created or mined. MicroStrategy’s CEO Michael Saylor and El Salvador’s president Nayib Bukele continue to buy Bitcoin in bulk.
Mike McGlone has warned that even though the price of Ethererum might extend, it is likely to remain between $4,000 and $5,000 per Ethereum.
Ethereum has withstood a substantial correction this year as it moves into 2022 with rising adoption and declining supply. Mike McGlone added that Ethereum 2.0 has already begun begging the question for a pullback, how much overextended the prices should be and how deep into the support the crypto needs to dive into finding a responsive buyer. $4,000 might act as a pivot.
Mike McGlone has put forth Bitcoin and Ethereum price prediction way ahead of other most prominent cryptocurrency industry executives, which are appearing before the United States lawmakers who warn that if the regulation regarding the permit of the sector to flourish is not updated, they might relocate overseas.
The United States risks unnecessarily disturbing laws and regulations instead of debating openly in public regarding legislative solutions, said Alesia Haas, Coinbase CEO.