Macro’s new developed turmoil could play a pivotal role in strengthening the world’s most expensive cryptocurrency, Bitcoin, suggest Bloomberg’s analyst, Mike McGlone.
McGlone argues that the year 2022 will give a head start to the crypto economy. He believes that the year 2022 would welcome Bitcoin with a value ranging over and above US$ 100,000. Even the prices of Gold would be increased further by US$ 2,000, said McGlone. The increment in the values of Bitcoin and Gold would inculcate deflationary forces.
He argues that inflation has started to creep in as there is not a single day when “inflation” is not making its way into the headlines. On the other hand, people are criticizing Bitcoin and raising questions with regard to it being a hedge against inflation.
Cointelegraph had earlier covered a news item in which it suggested that the Consumer Price Index (CPI) will be published on 10th December. Before making the CPI data public, experts believed that inflation will increase subsequently by 6.7 percent. The data has now been made public and it proved that the prediction was right. There has, in fact, been an increase in inflation by almost 6.8%.
As per the analysis of McGlone, the year 2022 could turn out to be groundbreaking for digital currencies, especially for Bitcoins. He argued that due to increased inflationary pressure, the equities and prices for commodities will eventually decline. He thereafter predicted the future value of Bitcoin for 2022 as US$ 100,000 or above. With regard to Gold, he predicted the future possible value of Gold to be US$ 2,000. He pointed out that deflationary forces would be revived in 2022 because of continuously reducing yields. This is likely to have a positive impact upon both, i.e. Bitcoin as well as Gold.
So for McGlone at least Bitcoin has a bright future ahead. He is expecting that Bitcoin is on the track where becoming a US$ 100,000 worth of the crypto coin is possible in 2022. However, he is being optimistic about Gold as well. He believes that macro headwinds will also benefit Gold, although Gold underperformed the whole year.