U.S. Could ‘Embrace Crypto In 2022’—Huge Bitcoin And Ethereum Price Prediction Revealed

Forbes

Bitcoin and cryptocurrency prices remain under significant pressure following a sharp sell-off last weekend—sparking worrying “bubble” warnings.

The bitcoin price has lost almost 20% since last week and is trending downward, moving lower along with the second-largest cryptocurrency by value, ethereum. The ethereum price has lost around 15% over the last week.

Now, one closely-watched analyst has said he expects the U.S. to “embrace cryptocurrencies in 2022″—predicting the bitcoin price “appears to be on a trajectory for $100,000” and the ethereum price could hit $5,000.

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The bitcoin price has rocketed higher over the last year, helping to boost the ethereum price as … [+] investors pile into cryptocurrencies.

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“We expect the U.S. to embrace cryptocurrencies in 2022, with proper regulation and related bullish price implications,” Bloomberg Intelligence senior commodity strategist Mike McGlone wrote in his latest research note, adding, “the unlimited supply of fiat currency should sustain rising prices, notably in bitcoin and ethereum, which have limited supply.”

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The price of bitcoin, ethereum and most other major cryptocurrencies have risen sharply over the last year, in part due to the huge monetary stimulus measures undertaken by the U.S. Federal Reserve and other central banks around the world that have boosted the price of stock markets and assets across the board.

However, soaring inflation and a strong U.S. jobs market could mean the Fed moves to curtail its stimulus program in 2022—something McGlone thinks could mean the price of both bitcoin and ethereum continue to rise even as stock markets fall.

“Renewed impetus from the Federal Reserve to take away the punch bowl, and declining bond yields may point to a macroeconomic environment in 2022 that favors top cryptocurrencies bitcoin and ethereum,” wrote McGlone. “Crypto assets showing divergent strength versus equities near the end of 2021 may portend continued digital-asset outperformance in 2022.”

Stock markets have seesawed through December due to fears over a new Covid-19 variant and the Fed potentially accelerating its planned stimulus tapering in the face of surging inflation.

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“A primary force to reverse expectations for Federal Reserve tightening in 2022 is a drop in the stock market, which may be a bit of a win-win for bitcoin,” wrote McGlone, adding, “bitcoin appears to be on a trajectory for $100,000,” and is “well on its way to becoming a digital store-of-value,” similar to gold.

“We see it as more of a question of time, notably due to the eonomic basics of increasing demand versus decreasing supply,” wrote McGlone.

Some 90% of all the 21 million bitcoins have now been created—or mined—and the likes of MicroStrategy MSTR chief executive Michael Saylor and El Salvador president Nayib Bukele are continuing to buy up large numbers of bitcoins.

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MORE FROM FORBESNew German Chancellor Olaf Scholz Made A Serious Bitcoin And Crypto Warning Ahead Of The Latest Price Surge

The bitcoin price surged through the first few months of the year but has since stalled. Some have … [+] made the prediction the bitcoin price will break out in 2022, boosting the ethereum price along with it.

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Meanwhile, Mcglone warned the ethereum price could be “overextended,” but will likely remain in a range of between $4,000 and $5,000 per ether.

“Ethereum enters 2022 with rising adoption and declining supply, while having withstood a substantial correction this year,” wrote Mcglone, referring to ethereum’s long-await transition to ethereum 2.0 that was begun this year. “The key question is how overextended prices may need to get for a pullback, and how deep into support the number two crypto may dip until it finds responsive buyers,” adding “$4,000 may act as the key pivot for 2022.”

Mcglone’s bitcoin and ethereum price prediction came ahead of some of the biggest cryptocurrency industry executives appearing before U.S. lawmakers, warning that if regulations are not updated to permit the sector to flourish, companies would relocate overseas.

“Without tailored legislative solutions that are openly debated with public participation, the United States risks unnecessarily onerous and chilling laws and regulations,” said Coinbase chief financial officer Alesia Haas.

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Author: Billy Bambrough, Senior Contributor


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