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Bitcoin might hit $100K, gold $2K in 2022 because of ‘deflationary forces’ — Bloomberg analyst


$100,000 Bitcoin (BTC) and $2,000 gold might greet 2022 as international markets face “deflationary forces,” says Bloomberg Intelligence.

In a tweet on Dec. 9, Mick McGlone, a senior commodity strategist at Bloomberg’s analysis arm, forecast that subsequent 12 months could be good for each gold and BTC.

“Optimistic ramifications” for Bitcoin because of deflation

As inflation makes headlines worldwide this month, Bitcoin has confronted criticism over its alleged position as a hedge because of its 39% drawdown from all-time highs.

As Cointelegraph reported, the most recent U.S. Shopper Worth Index (CPI) knowledge is due Friday, with analysts presuming that inflation could have sharpened 6.7% year-on-year.

Subsequent 12 months may very well be very completely different, McGlone argues, as inflationary pressures give technique to declining commodity costs and equities.

“$100,000 Bitcoin, $50 Oil, $2,000 Gold?” he tweeted.

“Peaking commodities and the declining yield on the Treasury lengthy bond level to dangers of reviving deflationary forces in 2022, with constructive ramifications on Bitcoin and gold.”

Macro belongings comparative chart. Supply: Mike McGlone/ Twitter

A previous post highlighted crude oil costs now being roughly equal to the place they had been simply earlier than the 2008 World Monetary Disaster.

Schiff forecasts inflation “getting medieval”

McGlone is well-known for his bullish views on Bitcoin. Gold, a lot maligned this 12 months because of its comparatively flat efficiency versus Bitcoin, may profit from macro headwinds.

Associated: Bitcoin dips under $50K as Evergrande defaults on US greenback debt

The Bitcoin versus gold debate continues to rage, with proponents buying and selling barbs as neither camp sees the sorts of good points they assumed would characterize This autumn.

On inflation, nonetheless, there was consensus to be discovered.

“How lengthy earlier than buyers notice that even when the Fed follows by with its inflation combating plan to taper QE and lift rates of interest barely in 2022, that it will be too little too late to derail this inflation juggernaut?” gold bug Peter Schiff queried this week.

“If Powell would not get medieval, inflation will!”

U.S. inflation chart. Supply: Tradingeconomics.com