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The prices of many cryptocurrencies continue to suffer. Bitcoin, for example, has fallen by more than two percent since the beginning of last week. In addition, Ethereum has dropped by more than six percent, while BNB is down by more than seven percent.
Could Bitcoin Hit a Six-Figure Number in 2022?
Several analysts think that this is going to continue through the first portions of 2022. Many banks are beginning to talk about hiking interest rates and engaging in other economically hazardous tactics as they fight inflation, which means many people are beginning to sell off risk assets like certain tech stocks and, of course, crypto.
However, there are other analysts that think assets like bitcoin are about to explode to new heights. In a recent interview, Mike McGlone – a senior commodity strategist at Bloomberg – says he feels bitcoin is going to dodge selling pressure over the next couple of weeks, and that this will be the year in which BTC reaches a whopping six-figure price. He foresees $100,000 for bitcoin in the coming future.
I think it [bitcoin’s price] is building a good base here around $40,000, and I think it’s going to take it to that level. It’s more likely to accelerate towards $100,000.
He thinks one of the big reasons that bitcoin is likely to hit this price soon is because the asset is going from being purely speculative to a store of value, which he thinks will make it unique amongst its crypto brethren. He mentioned:
Bitcoin is in a unique phase, I think, of transitioning from a risk-on to risk-off global digital store of value, replacing gold and becoming global collateral, so I think that’s going to be happening this year.
Are Gold’s Days Numbered?
The idea is that bitcoin will eventually outsell gold and become stronger than the precious metal that so many people hold close to their hearts. It was mentioned last year by one analyst:
From an investment and ideological standpoint, bitcoin is actually more like a commodity. More precisely, like one of the most expensive and ‘useless’ commodities in the world – gold. Unlike other commodities like oil, gold has limited use. Gold is not a medium of exchange, either. You can’t walk into Pizza Hut, drop a sliver of gold on the counter, and get a slice of pizza. At most, you’ll get some strange looks, and yet, central banks hold 34,000 tons of the shiny, yellow bullion bars in their reserves. Institutional and individual investors have sunk ~$2.7 trillion into gold, and every year, gold holdings keep growing. That’s because gold has just one job, and it does it very well. That is to sit tight in a vault and hold its value.
It is estimated that if just 20 percent of the world’s private gold investments were moved to bitcoin, the digital asset’s market cap would shoot up to about $1.3 trillion.