Although cryptocurrency markets have fallen to multi-month lows, major cryptocurrencies such as Bitcoin ( BTC ) and Ether ( ETH ) are likely to reach new record highs in 2022, according to a Bloomberg analyst.
According to Bloomberg Intelligence analyst Mike McGlone's forecast published in his latest market analysis on Thursday, BTC and ETH will aim for $100,000 and $5,000 respectively this year .
"The key problem we see is the Federal Reserve, as it faces the highest inflation in four decades, more likely to raise interest rates if risky assets continue to rise," - McGlone noted.
McGlone also predicted that stablecoins BTC, Ether and US will maintain their dominance in 2022, while some top 2021 winners such as Binance Coin ( BNB ) and Solana ( SOL ) "may end the pattern of temporary visitors among the top five."
According to the analyst, expectations of a Fed. interest rate hike in 2022 may support a "win-win" scenario for Bitcoin versus the stock market, with BTC likely gaining an "edge" versus equities this year.
"Crypto assets are peaking among the speculative and risky, but first borns are quickly becoming the world's digital reserve assets," McGlone wrote.
Bloomberg Intelligence's latest analysis is in line with similar earlier predictions by McGlone. In early December 2021, the analyst predicted that 2022 would be a good year for both BTC and gold, forecasting that they would reach $100,000 and $2,000, respectively. He had previously managed to predict the consensus for the first BTC exchange-traded fund in the United States in October 2021.
