Despite being down nearly 30% since November’s all-time high, Bitcoin is still in a consolidating bull market and on track to hit $100,000, according to a report from Cointelegraph. Bloomberg Intelligence report. The article says it is unlikely that the BTC bull run has stopped and predicts a fixed supply to sustain the increasing price.
“The key question facing Bitcoin as it approaches the start of 2022 is whether it will peak or simply be a consolidating bull market,” the report said. “We believe it is the latter and see that the standard cryptocurrency is well on its way to becoming a global digital collateral in a world that is going that way.”
The report also highlights how this year’s corrections have made the asset stronger and its bull market healthier, as Bitcoin survives and weathers China’s mining ban to hit all-time highs. new. In addition to breaking previous peaks to hit $69,000 in November, the Bitcoin network hash rate also recently hit a new all-time high, showing the deep resilience of its consensus protocol. .
“Bitcoin seems to be on orbit for $100,000. We consider it a question of time, especially since the underlying economic underpinnings is growing demand versus decreasing supply,” the report said.
Further mainstream adoption will lead to increased demand for bitcoin, and the development of new exchange-traded funds and futures and the legal tender status in El Salvador are examples of this process. this program. According to the report, as BTC issuance decreases and awareness of it increases, the price is expected to increase and volatility to decrease.
More regulatory clarity in the United States for Bitcoin could also increase its acceptance among certain types of investors and help meet even higher demand for the asset. The report says next year could be important in that sense, as the country appears to be starting to accept cryptocurrencies with more detailed legislation and a better understanding of the technologies from government officials.
Monetary policy could also play a role, especially if the Federal Reserve’s tightening measures lead to a stock market crash, prompting the central bank to stir the ship the other way around. .
“A key driver for reversing expectations for a Federal Reserve tightening in 2022 is a drop in the stock market, which could be a win-win for Bitcoin,” the report said. said, adding that Bitcoin “is well on its way to becoming a digital store of value. ”
“Bitcoin will face initial difficulties if the stock market falls, but to the extent that falling stock prices put pressure on bond yields and encourage more central bank liquidity, cryptocurrencies have could become the primary beneficiary,” according to the report.
The report also mentions the failure of the Treasury Department’s long-term bonds to stay above 2% despite the broad consensus on higher yields, a phenomenon that could lead to a deflationary environment in 2020. Come, support Bitcoin.
Bloomberg Intelligence explains that funds have moved away from the “old analog gold” and into Bitcoin.
“The question for 2022 focuses on the reversal or acceleration of these flows. With bond yields falling, our bias is in bond yields,” according to the report.
Bloomberg added that Bitcoin’s fixed supply, enforced through a dwindling issuance every four years, could help it outperform stocks again next year, giving it an edge over the stock market. expansion has not had a 10% correction since the 2020 crash.
https://bitcoinmagazine.com/business/bitcoin-to-hit-100000-in-2022-bloomberg-report Bitcoin Hits $100,000 in 2022: Report