Bitcoin and cryptocurrency prices are still under heavy pressure after last weekend’s sharp sell-off, raising concerns about the bubble warning.
Bitcoin price has fallen nearly 20% since last week, along with Ethereum, the second largest cryptocurrency. The price of Ethereum fell around 15% last week.
Analysts, who are currently under scrutiny, expect the United States to “adopt cryptocurrencies by 2022”. Bitcoin price “seems to be in the $100,000 line” and Ethereum price could reach $5,000.
“We anticipate the United States will adopt cryptocurrencies in 2022, which will affect proper regulation and associated price increases,” said Mike McGrown, head of commodity strategy at Bloomberg Intelligence, in a recently published research report. “Unlimited fiat currencies should push prices up, especially Bitcoin and Ethereum, where supply is limited.
The price of Bitcoin, Ethereum and most other major cryptocurrencies has also been boosted by massive monetary stimulus measures from the US Federal Reserve and other central banks around the world. Last year increased sharply. Total assets.
However, rising inflation and a strong US labor market could mark the Fed’s move to curb stimulus in 2022. McGlone believes this means that Bitcoin and Ethereum prices will continue to rise as stock markets fall.
“The new push by the Federal Reserve to steal the punch and lower bond yields could mean the macroeconomic environment in 2022 is in favor of the best cryptocurrencies, Bitcoin and Ethereum. said McGlone. Cryptocurrency assets that have a different strength compared to stocks at the end of 2021 could indicate continued dominance of digital assets in 2022.
Stock markets are slated for December amid concerns about the new version of Covid-19 and the potential for the Fed to accelerate the dismantling of planned incentives in the face of rising inflation.
“The main force undermining expectations of the Federal Reserve’s tightening in 2022 is the dip in the stock market, which could be a bit of a boon for Bitcoin,” said McGrown. “Bitcoin is 10. It seems to be heading towards $10,000,” he added. And like gold, “we are on the verge of becoming a digitally valuable store.”
“We think it’s only a matter of time, especially given the economic fundamentals of rising demand and falling supply,” McGlone wrote.
Currently, about 90% of the 21 million bitcoins are created or mined, including MicroStrategy.
McGlone, meanwhile, warned that Ethereum’s price might be “overrated” but that Ethereum could remain in the $4,000-5,000 range.
“Ethereum will enter 2022 with more staff and reduced supply, while it is undergoing significant improvements this year,” he said, referring to the long-awaited transition from Ethereum to Ethereum 2.0 that began this year. “The key questions are how do you get payout prices that take too long and how deeply do you support a second cryptocurrency until we find a responsive buyer. “Is it possible for me to drown?” He added, “$4,000 could be a key moment in 2022.
McGlone’s Bitcoin and Ethereum predictions are ahead of some of the crypto industry’s biggest leaders before US lawmakers, and the company will go overseas if the regulations that allow the industry to thrive are not updated. I warn you that it will move.