Deflationary Forces to Help Bitcoin’s Price Reach $100K in 2022, Says Bloomberg Analyst
According to Mike McGlone, deflation could swap inflation next year and that would drive bitcoin's price to $100K.
Mike McGlone – Senior Commodity Strategist at Bloomberg – expects 2022 to be a successful year for both bitcoin and gold. He believes the primary cryptocurrency will hit $100,000, while the precious metal will trade at $2,000.
What Will Fuel Bitcoin’s Rally in 2022?
The current global financial system is passing through tough times, to say the least. The COVID-19 pandemic, and the health concerns around it, caused many companies to temporarily cease operations or send their workers to work from home. This led to immediate disruptions, crippled productivity, and built a solid base for future monetary issues.
At the same time, numerous central banks started printing vast amounts of fiat currencies to alleviate some of the short-term pain. However, by doing so, the inflation rate surged to unseen levels in decades. In the USA it stands at over 6% – the highest it has been in nearly 40 years.
And while national currencies, such as the American dollar, are slowly losing their purchasing power, bitcoin is considered by many as the exact opposite. As of the moment, it is an inflationary asset. Its fixed supply of 21 million coins ever to exist gives it a trustworthy scarcity, making it an attractive investment tool that many people got on board during the ongoing financial turbulence.
Nonetheless, Bloomberg’s Mike McGlone predicted that “deflationary forces” will prevail next year and inflation will stop spreading across the globe. This process could help the primary cryptocurrency to tap a significant milestone in its USD development of $100,000. According to the expert, the same factors will cause gold to climb to $2,000 and oil to hit $50.
