Bitcoin appears to be on a trajectory to touch $100,000: Report

Bitcoin, the largest and the oldest cryptocurrency, has given around 60 per cent return since the beginning of this year. It is currently trading at $47,000 after reaching an all time high of over $68000 in November 2021. Similarly, Ethereum, the second largest virtual token, has given year-to date (YTD) return of over 400 per cent and is currently trading at $3709. Will Bitcoin and Ethereum continue this stellar performance in 2022? Which other cryptos can lead the rally next year?

According to Bloomberg Crypto Outlook report titled ‘Global Cryptocurrencies 2022 Outlook’, “Bitcoin appears to be on a trajectory for $100,000. We see it as more of a question of time, notably due to the economic basics of increasing demand vs. decreasing supply. There are ample examples of Bitcoin simply staying on course in 2022 of its process of adoption into the mainstream. U.S., Canadian and European exchange-traded funds and futures and legal-tender status in El Salvador point to a bull market in global adoption.”

Experts say diminishing supply is a key attribute which can lead to a continued rally in two cryptos. For example, there are total 21 million Bitcoins that can ever be mined. Out of this, a total number 18.77 million Bitcoins have already been in circulation. The report also states that Ethereum has been advancing as a percentage of the total, notably to about 20 per cent from around 10 per cent a year ago. Most crypto dollars operate on the Ethereum platform.

Apart from Bitcoin and Ethereum, the report also states that crypto dollars are the most significant advancing part of the digital-money revolution and the third leg of the crypto stool. These virtual tokens are designed to always be worth $1 and are mainly used for purchasing other cryptocurrencies and transferring money.

“The ability to transact and transmit dollars around the clock with instant settlement, and to earn interest well above eurodollars, are attributes of crypto dollars, with implications for digital assets like Ethereum. This has buoyed the greenback and trickled down to most financial assets. In a world rapidly going digital, the shift to transacting via digital tokens may be unstoppable. Our graphic compares the increasing market cap of the top five crypto dollars (Tether is No. 1) to Bitcoin and Ethereum. Volume in Tether typically exceeds trading in Bitcoin and Ethereum combined, according to Coinmarketcap. Tether is an Ethereum token,” the report said.

The Bloomberg Galaxy Crypto Index (BGCI) has increased about 1,200 per cent since the end of 2019 vs. closer to 90 per cent for the S&P 500. “Such outsized performance typically comes with volatility, and the almost 60 percent drawdown in the BGCI in 2021 could add underpinnings for further appreciation in 2022,” the report added.

Also Read: PM Modi’s Twitter handle hacked, restored later; Bitcoin tweet deleted

Also Read: Cryptocurrency prices today: Bitcoin trading lower; Ethereum, Dogecoin & Stellar slip up to 2%

This news is republished from another source. You can check the original article here

Be the first to comment

Leave a Reply

Your email address will not be published.


*