Even as Bitcoin dropped below $42k earlier today, Bloomberg Intelligence Bitcoin analysts think that this price drop could be a temporary deal. One pro-crypto analyst at Bloomberg Intelligence believes that the digital currency has another bullish move left in it. While this sentiment is shared by many, it remains to be seen how well the market responds later this year.
According Mike McGlone, a Bloomberg Intelligence Bitcoin Senior Analyst, it can rise strongly, even higher than stocks later this year and reach the coveted $100 valuation in the process. Ethereum too can post as high as $5k. In a forecast, McGlone predicted that the cryptocurrency could be in for a big year as the US Federal Reserve tries to enact monetary measures to bring the inflation down.
He noted:
“A key issue we see is the Federal Reserve, as it faces the greatest inflation in four decades, more inclined to raise interest rates if risk assets continue climbing,”
According to him and the Bloomberg Intelligence Bitcoin price prediction the top two cryptocurrencies Bitcoin and Ethereum as well as USD-pegged stablecoins will continue with their dominance. Bitcoin alone can have a big share of the price increase. The analyst believes that interest rate hikes are showing the desperation of the Fed to take drastic measures to try and control the economy. However, the move can backfire a little and Bitcoin can continue appreciating and cement its status as the world’s premier digital reserve asset.
Various other analysts have also predicted that the crypto sector will recover strongly and possibly move towards a $100k target. However, the overall price pattern has been very bearish in the last two months or so. Instead of a mega bullish finish to 2021, we instead saw a price correction of around 38% at the end of the year. Then 2022 New Year came and went and there is still no visible bullish intent from the digital currency.
This means that even if we have a bullish scenario coming up, there are no signs just yet apart from indicators and when it comes to them, the biggest indicator is the price index itself and that is still in bearish territory. However, the cryptocurrency does have some time to recovery from the recent losses and move on towards higher targets.
Overall, the digital currency sector is still on a long-term uptick and is likely to remain so for some time. The crypto winter is still some time away so the bulls can hope for a price recovery, even if not to $100k.
Image by Bloomberg
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