Bloomberg Intelligence senior commodities strategist Mike McGlone forecast near-term upside in the price of the leading cryptocurrency. He is confident that by the end of 2022, digital gold will outperform its peers.
According to the Bloomberg Cryptos Outlook, in the first half, among major asset classes, only commodities rose. Analysts say this matters for Bitcoin.
During downturns, digital gold and Ethereum tend to outperform most major assets, experts note. McGlone called an increase in interest rates by central banks a ‘strong tailwind’.
He noted that since 2014, October has been Bitcoin’s best month. The analyst believes that the Ethereum transition to the Proof-of-Stake consensus algorithm could help it and Bitcoin settle above the $1,000 and $20,000 levels, respectively.
Earlier, Galaxy Digital CEO Mike Novogratz called the main driver of Bitcoin’s resurgence the Fed’s retreat from aggressive rate hikes in its fight against inflation.
In September, former George Soros associate at the Quantum fund, billionaire Stanley Druckenmiller forecast the revival of digital assets amid the collapse of the fiat-based economy.
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