First Bloomberg Cryptocurrency Prospect 2022: Bitcoin may outperform stocks

Based on data from the Bloomberg Galaxy Cypto Index (BGCI) ——

*Bitcoin prices fell 19% in December 2021, with an annual increase of 29%.

*Ethereum shares fell 20% in December 2021 with an annual growth rate of 228%.

In 2022, the risk to global assets will increase further as the Fed faces its biggest crisis in 40 years and Bitcoin could benefit. Among the legitimate and risky assets, Bitcoin has the best return and is gradually improving to become the “global digital asset plan”. Bloomberg Intelligence predicts that Bitcoin, Ethereum, and stablecoins will continue to be the leaders in the cryptocurrency industry, while Binance Coins and Solana will continue to join their businesses.

However, for the larger cryptocurrency market,The most important phrase for 2022 is “Don't oppose the Fed”.

Risky assets vs Fed

In 2022, the final return on Bitcoin could be $ 30,000 and the final return on Ethereum could be $ 2,000.In 2021, Bloomberg Intelligence sees the market rising sharply, for example, the Bloomberg Galaxy Crypto Index is up 150%. Initially affected by the downturn, it will also affect the cryptocurrency market, but in general Bitcoin will be the best performer in the stock market.

Conclusion: Cryptocurrency Markets Should Pay Attention To The Fed's Deflation Strategy In 2022

Bitcoin and Ethereum have a solid foundation.After good discussions in 2021, the price of Bitcoin could climb to $ 30,000 while the Ethereum price could start to climb to $ 2,000. Bloomberg Intelligence predicts that these two major cryptocurrencies will continue to dominate market culture and rise further in 2022. Some people believe 2022 may carry less risk than 2020, which has come. not. Bloomberg Intelligence sees a higher probability for Bitcoin for $ 100,000 and a strike for $ 5,000 for Ethereum. As the Fed faces its biggest rate hike in four years, one of the main issues is that if venture capital continues to grow, the Fed could have a bigger impact on inflation. .

Cryptocurrencies are the first choice of risk takers and gamblers, falling value of risky assets means the Fed has won the financial battle, the Here Bitcoin can be a huge beneficiary.

Bitcoin could outperform commodities in 2022.The prospect of a Fed rate hike in 2022 could have a positive effect on Bitcoin and the stock market. The chart below shows the 13th Federal Funds futures contracts. The 60-month moving average of the S&P 500 is also high. How long will the bull market last now? Bitcoin, a cryptocurrency, seems to have been in the foreground.

Bottom line: Biggest problem for the Fed's austerity policy - a bad market

If market rules had always been applied to the cryptocurrency market, the current market would have helped bitcoin prices rise. If the Fed reverts to monetary easing, it will likely be because the market is still depressed, but if the Fed does, it will still have a positive impact on digital returns.

Profit income fell in the fourth quarter of 2021, which could indicate a normalization of commodity returns for 2022. If the S&P 500 reverses and falls temporarily, then Bitcoin could benefit before the contract and gold. However, it should be noted that of us Bitcoin, Bonds, and Gold, Bitcoin has the highest volatility. As early as 2022, risky assets like Bitcoin, bonds and gold could be affected by Fed policy.

Below: Cryptocurrencies can be a harbinger.

Cryptocurrencies are already a harbinger of a declining economy, as cryptocurrencies appear to be the first choice of investors in speculative markets today. For example, the heights of Dogecoin and Shiba Inu coincide very closely with the heights of the market.

2022 hauv cryptocurrency market fundamentals

Fundamentals of Bitcoin in 2022 on Hash Reset in 2021Now Bitcoin is recovering from a hashrate crash and losing value in 2021. Overall, Bitcoin's foundation in early 2022 is not bad. The price of Bitcoin on January 5, 2022 is almost the same as the price of Bitcoin in February 2021. As Bloomberg Intelligence has seen, the Bitcoin bull market may become more integrated and resume growth.

Will the price of Bitcoin increase 10 times?In 2021, Bitcoin survived an unprecedented slowdown, and as the hashrate recovered, Bitcoin's fundamentals appeared to be minimally affected, helping to further consolidate the base price in 2022. In 2018, when the price of Bitcoin fell to reach the $ 3,000 level, Bitcoin 10-day average Chinese power fell 30%. According to data from Coinmetrics, the strength of the entire Bitcoin network is expected to increase by 50% by 2021. During the year, the value of Bitcoin has increased from $ 60,000 to $ 30,000.

Below: Bitcoin fell into the $ 30,000 range in 2021, similar to the $ 3,000 drop in 2018.

However, as in 2018, Bloomberg Intelligence estimates that the decline in the strength of the entire network in 2021 will strengthen the base price of Bitcoin. Now, most bitcoin mining operations have moved to the North American market, with most mining companies listed on the stock exchange, preferring to hold bitcoins rather than sell them. Investors who invest in the mining industry are directly involved in cryptocurrencies.

Traders quickly gained Bitcoin.In a digitized world, Bitcoin serves as a benchmark crypto asset because it limits its assets. Bitcoin Treasuries has expanded the Bitcoin holdings of major corporations and five major tech companies, including Tesla and MicroStrategy, as well as mining machine companies. By 2021, crypto assets have undergone a transformation and the industry has grown.

Conclusion: A large number of trading companies have added Bitcoin to their data.

There was a lot of competition for Bitcoin in 2021, but eventually Bitcoin overcame the difficulties and gained a foothold.

Why is the Bitcoin bull market "difficult"?Of course, Bitcoin was originally risky, but as the world has changed it has turned into a digital asset, benefiting from its value. Demand for Bitcoin is still in its infancy and adoption is increasing, but the supply is decreasing. An important question at the start of 2022 is whether Bitcoin is too hot. Bitcoin's fair price could be above its 50-week moving average, according to a Bloomberg Intelligence report.

Bottom line: Bitcoin still appears to be a bull market product.

Over the past year, the price of Bitcoin has increased slightly faster. Currently, Bitcoin's level is expected to be around $ 100,000, supported by high-performance, demand-driven infrastructure.

3 crypto backbones - Bitcoin, Ethereum, US dollar

Bitcoin, Ethereum, and the US dollar are the “three musketeers” of the crypto industry.Crypto assets are a model of free international trade, with the biggest winner being the US dollar. If the previous pattern is repeated, Bitcoin keys, Ethereum, and stablecoins should still be at the top of the cryptocurrency ecosystem, but there are now around 16,000 contenders vying for speculative leadership. Compared to a year ago, Binance Coins and Solana have entered the best crypto levels, replacing Litecoin and XRP.

The top three cryptocurrencies are also Bitcoin, Ethereum, and Tether.Stablecoin offers continue to increase, Bitcoin as a larger contract and Ethereum as a platform for DeFi, FinTech, and NFT. According to data from Coinmarketcap, the top three cryptocurrencies are still Bitcoin, Ethereum, and Tether. The rapid rise in the importance and popularity of the stable coin, where Tether has always been held, underscores the importance of the US dollar in the crypto ecosystem, especially the US dollar market. Another volume of fiat currency exchange.

Below: Tether, Ethereum, Bitcoin against 16,000 other cryptocurrencies

Bitcoin became the world's international tool before or called the Tanfqui procedure without shaken by so called "Tanfrium Killer". On the other hand, the number of categories of encrypted growth has increased by 202,000 up to 16,000.

Is there a change in the top ranking of cryptocurrencies?According to data from Coinmarketcap (pictured below), Litecoin and XRP were still in the top 5 cryptocurrencies a year ago (pictured below), but have fallen to 22nd and 8th place one year later. This result shows that there is still a lot of speculation in the cryptocurrency market. Fortunately, the top three cryptocurrencies have not been traded and are still Bitcoin, Ethereum, and Tether.

Examples of cryptocurrency predictions: Dogecoin in the first half of 2021 and Shiba Inu in the first half of 2021.

Stablecoins continue to grow.The expansion of fixed income does not appear to be slowing down, which is also the main reason the total digital real estate market continues to grow. In addition, as technology production continues to increase, stablecoins will also face limitations and market pressures, which is to be expected.

Bottom line: In addition to the best digital tools, part stabilization continues.

However, fixed income coins will face the same challenges as digital bank transfers. The chart above shows the rise of stablecoins and how they compare to Bitcoin and Ethereum.

Bitcoin vs or vs argent, actions

Bitcoin will withdraw gold, just like gold reverses silver.Bitcoin's volatility is slowly decreasing relative to most asset classes, so we can see silver moving from gold to cryptocurrencies like Bitcoin.

Can Bitcoin Convert Gold into an Investment?Much like the impact of gold on silver, the impact of Bitcoin on gold can almost never stop. In 2017, the price of Bitcoin in USD exceeded the price of an ounce of gold, and since then people have started to take Bitcoin seriously, and this trend seems to be continuing. A Bloomberg Intelligence report shows an increase in the Bitcoin-to-gold ratio as early as 2022. It is now 25 times, but a year ago it was close to 18 times. Obviously, gold appears to be replaced by Bitcoin, and since January 5 the total gold holdings on the exchange rate have fallen 9% from last year, proving it.

Bottom: Bitcoin outperforms gold. Maybe it was just a matter of time.

Gold could reach $ 2,000 an ounce in 2022, but Bitcoin could rise at a faster rate.

Compared to the stock market, Bitcoin still has courage. A Bloomberg Intelligence report shows an increase in the value of Bitcoin over the past year. Compared to the Nasdaq 100 stock index, Bitcoin's volatility is now starting to decline. At the start of 2022, Bitcoin's 260-day volatility was around four times that of Nasdaq, which was around 12 times in 2013 and 8 times in 2017.

Bottom line: Bitcoin has become a staple compared to most assets.

The Fed could face its biggest financial crisis in 40 years, and the relative risk risks of Bitcoin versus commodities appear to continue to decline.