Analysts: Bitcoin Could Turn Around in 2022’s Final Months

The world of crypto hasn’t been doing well as of late. Bitcoin, for example, is down roughly 70 percent from its all-time high of about $68,000 per unit in the month of November last year, while other leading assets such as Ethereum have followed suit, ultimately contributing to the massive, $2 trillion valuation loss incurred by the crypto space since January.

Bitcoin and Crypto Headed for Reversals?

Digital assets are facing their most bearish conditions in history, but now it appears the tables are turning, and most analysts think cryptocurrencies like bitcoin are about to begin turning themselves around and recuperating.

Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, recently stated in an interview:

When the ebbing economic tide turns, we see the propensity resuming for bitcoin, Ethereum and the Bloomberg Galaxy Crypto Index to outperform most major assets.

He recently published a report claiming that since the year 2014, October has always been the most solid month for bitcoin. We’ve seen this in the past before, such as in 2020 when bitcoin rose to $13,000 per unit (a large number at the time) following news that PayPal was going to allow traders to hold their assets on the digital platform.

McGlone continued with:

Rate hikes by more central banks than ever is a strong headwind, but it’s the potential for the benchmark crypto to shift toward becoming a risk-off asset, like gold and U.S. Treasurys, that may play out in [the second half of 2022].

One of the big reasons analysts seem to think the prices of bitcoin, Ethereum, and related assets will go up is because they believe the Fed is going to eventually give up its fight against inflation. Right now, the Fed is consistently hiking rates as a means of fighting increasing prices, but by 2023, should this battle be limited, the U.S. dollar may experience a huge dip in strength, which could pave the way for crypto assets to make their return.

Yuya Hasegawa – a crypto market analyst at Bit Bank – explained in a statement:

The current optimism is akin to what the stock market had before August’s consumer price inflation (CPI) announcement, where they expected inflation to slow down from July and thought the Fed would dial down on rate hikes… Current optimism could be betrayed as a couple of Fed members seem to be ready to compromise economic activities to some extent in order to bring down inflation.

The Merge May Help ETH in the Long Run

McGlone concluded with:

Ethereum’s transition to proof of stake may be helping it build a base above $1,000. The nascent technology and more volatile number two crypto have a tendency to outperform the stock index on the way up, but The Merge may mark an inflection point of Ethereum also beating the Nasdaq 100 when it declines.

Tags: bitcoin, crypto, Mike McGlone