Bloomberg strategist forecasts Bitcoin price to reach $100,000 in 2022

Bitcoin is completing its transition to a safe-haven asset, a move that supports the price reaching $100,000 in 2022. This was stated by Mike McGlone, Bloomberg Intelligence’s senior commodities strategist, in an interview with Cointelegraph.

According to McGlone, the sole obstacle on the path to this goal for the first cryptocurrency is the tightening of monetary policy by the ФРС.

The regulator plans to raise the federal funds rate sooner and at a faster pace than previously anticipated. The move is linked to a strengthening economy and high inflation.

The Bloomberg analyst explained that Fed policy would weigh on Bitcoin’s price, as investors would likely gravitate toward fixed-income assets such as bonds. In his view, this is a short-term hurdle, and in 2022 Bitcoin’s price will rise significantly.

Bitcoin is, in my view, at a unique stage of transition from risky to safe store of value. It is replacing gold, becoming a global store of value. Therefore I believe this [reaching the $100,000 milestone] will occur in 2022,

McGlone added that bearish sentiment is a positive sign, signaling market consolidation.

Earlier on The Wolf Of All Streets podcast, the analyst said that the Fed’s actions will almost certainly “bring an end to the unbounded rise of stocks.” He noted that the market for digital assets would also suffer.

If you hold risky assets, you are fighting the Fed, and cryptocurrencies are the riskiest assets. The main thing to remember is that Bitcoin is the least risky among them. […] Here is my forecast — the economy will pull back, we will see a 10%-20% correction in the stock market. Bitcoin will benefit from this,” McGlone said.

The analyst is no stranger to forecasting Bitcoin’s price to reach $100,000. Earlier he shared an even more optimistic view — digital gold transforms into a low-risk reserve asset, thereby its price would rise to $400,000.

As noted in December, McGlone said he expects mass adoption of cryptocurrencies with proper regulation and a subsequent bull market in 2022.