Deflationary Forces to Help Bitcoin’s Price Reach $100K in 2022, Says Bloomberg Analyst

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Mike McGlone – senior commodities strategist at Bloomberg – expects 2022 to be a successful year for bitcoin and gold. He believes the main cryptocurrency will reach $ 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, many central banks have started printing large amounts of fiat currencies to alleviate some of the pain in the short term. However, in doing so, the rate of inflation reached levels not seen in decades. In the United States, it stands at over 6%, the highest 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 that inflation will stop spreading around the world. This process could help the main cryptocurrency to take an important step in its development of 100,000 USD. According to the expert, the same factors will push gold to $ 2,000 and oil to $ 50.

Bitcoin as a Hedge

Another recent statement from Bloomberg revealed that many investors currently protect themselves from the rising inflation by getting into bitcoin. The company even called the leading cryptocurrency “the best inflation hedge around.”

The theory that BTC is such an alternative is backed by many prominent names including Anthony Scaramucci, Paul Tudor Jones, and Barry Sternlicht. Not too long ago, Jordan Peterson – a clinical psychologist and famous YouTube personality – also joined this club.

After having an educational conversation with Dr. Saifedean Ammous, who stated that bitcoin is “essentially the most powerful defensive technology against inflation,” Peterson said he bought more BTC.

Subsequently, John Authers – reporter at Bloomberg – determined that BTC had reached a deflation of 99.996% in the last ten years, which means that the price of a single coin in 2011 costs only 0.004 today. ‘hui.

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