A senior strategist shares 3 altcoin projects poised to shine in 2022 as the Fed withdraws its ‘punch bowl’ economic stimulus and creates a challenging market environment for stocks and bonds. According to Mike McGlone, who knows $10,000, $12,000, and $50,000 in Bitcoin, monetary policy moves could point to better performance for crypto in 2022. Strategist Mike McGlone and crypto expert Matteo Perruccio’s assessments and expectations on the crypto market cryptocoin.com compiled for our readers.
Why does the strategist have such confidence in crypto?
Mike McGlone, a senior commodities strategist at Bloomberg Intelligence, thinks crypto could be the alternative asset class to win against both stocks and bonds next year. In a recent note, Mike McGlone makes the following assessment.
The Federal Reserve’s renewed momentum to eliminate the ‘punch bowl’ and falling bond yields could create a macroeconomic environment that supports top cryptocurrencies Bitcoin and Ethereum in 2022. Cryptoassets showing divergent strength against stocks near the end of 2022 could point to continued digital asset performance in 2022.
According to the strategist, 2022 could be a bullish year for two cryptocurrencies (Bitcoin and Ethereum) and stablecoins, which Mike McGlone rebranded as “crypto dollars” in his latest December note. Mike McGlone expects the US to adopt cryptocurrencies in 2022 with favorable regulation and associated bullish prices.
Mike McGlone said, “After the nearly 30% drop in Bitcoin value last weekend, such confidence in crypto has led to wider adoption of crypto last year and the nearly 50% correction earlier this year when China banned crypto mining.” most attribute it to its ability to overcome ‘wobbles’.
Mike McGlone: This combination could shine on Bitcoin and leading altcoin
Now, as the Federal Reserve begins to tighten its monetary policy, Mike McGlone expects this to bring both a normalization in stock returns and a continued decline in US Treasury yields. This combination could “shine” on Bitcoin and Ethereum, he says. Saying that after a significant drop in the stock market, even if there is a reversal in tightening, Bitcoin can still win, Mike McGlone comments:
Bitcoin will face the first headwinds if the stock market crashes. But to the extent that falling stock prices suppress bond yields and encourage more central bank liquidity, crypto could be the primary beneficiary.
“If treasures try to hold above 2%, there may be another transition to a more deflationary environment in 2022 that will support Bitcoin,” the strategist added, adding that he does not expect the fund management industry to stop adopting crypto in 2022. This becomes one of the main drivers of his bull situation.
Bitcoin should move to $125,000 by the end of 2022, according to Matteo Perruccio
Here’s a view shared by the traditional finance veteran, who currently serves as the international president for $1 billion crypto asset manager Wave Financial, as he moves towards $125,000:
Past performance is not an indicator of future results. But when a new asset class outperforms established ones, opponents have no choice but to join. We see this process playing a primary role in 2022. Because money managers may face greater risks if they continue not to allocate portfolios to cryptos.
Matteo Perruccio is also in the camp, who believes stock returns will normalize and bond yields will continue to disappoint. The financial expert says that this market environment, coupled with more institutional acceptance in crypto, should create a significant rise in 2022 with Bitcoin heading towards $125,000 by the end of next year.
Altcoin projects pointed out by the strategist
Mike McGlone states that the crypto market could have a relative advantage in 2022, compared to broad stocks that haven’t corrected 10% since 2020. So if things look so optimistic for 2022, who will be the winner? The strategist recommends looking at two benchmark cryptocurrencies and crypto dollars:
Along with Bitcoin and Ethereum, the strong crypto dollar is poised to stay above the ecosystem against around 15,000 competitors vying for speculative leadership. Binance Coin (BNB), Solana (SOL) and Cardano (ADA) have replaced Ripple (XRP), Bitcoin Cash (BCH) and Chainlink (LINK) over a year ago.
Looking ahead to 2022, the strategist thinks Bitcoin is in the midst of a consolidated bull market with key support around $50,000 and resistance at $100,000 in 2022. According to Mike McGlone, based on its performance after the launch of the first exchange-traded Bitcoin futures in the US, leading altcoin Ethereum appears to be in a more “permanent bull market.”
The road to $100,000 in 2022 may not be so easy for Bitcoin
Matteo Perruccio states that it still remains a volatile asset class and has told friends and family that they should not risk what they cannot afford to lose in crypto. He is confident that Bitcoin will not go to zero as it is huge and proven, but in some scenarios he may see it drop to $35,000.
Meanwhile, crypto trader and analyst Scott Melker says he believes the bull situation for crypto can be renewed if it breaks the crucial support at $53,000. However, if Bitcoin drops below $42,000 and stays there for a while, it could mean an even sharper drop to $28,000.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.