It should be noted that Bloomberg Intelligence regularly comments on what is happening in the crypto niche, and sometimes their views are correct. In particular, in July 2021, Mike McGlone said that Bitcoin has a better chance of rising to $60,000 than falling to $20,000. At that time, the market was in a prolonged correction, and Bitcoin itself was worth less than $40,000.

And just a few months later, BTC has indeed jumped above that level, setting the current record at $69,000. At the same time, we never saw the cryptocurrency at $20,000.


Investors are now unsure of BTC’s growth to the coveted $100,000 by the end of 2021. Therefore, this target has quite logically spilled over into next year.

What will happen to Bitcoin next?

Bitcoin’s prospects in the eyes of many investors have been overshadowed by the cryptocurrency’s recent price collapse. At the same time, it has already fallen more than 39 per cent since reaching its all-time high. Can BTC really become a ‘safe haven’ for capital in the face of rising inflation?

Bloomberg analyst Mike McGlone acknowledged that next year could be a challenging period for global markets. Nevertheless, the huge amount of US dollar issuance will still play into the hands of crypto investors. Here is a quote from the expert on the subject, in which he shares his view of the situation. The quote was published by Cointelegraph.

$100,000 for BTC, $50 for oil and $2,000 for gold? Peak commodity growth and falling treasury bond yields point to the risks of renewed deflationary forces in 2022, which will positively impact both Bitcoin and gold.


In other words, the expert thinks that the current actions of the U.S. and other governments will have an impact on the world. First of all, we are talking about rising prices and depreciation of national currencies, which are already visible. In particular, monthly inflation in the USA amounted to 6.2 per cent in October, which was the highest rate in thirty years.

Well, fears of further currency depreciation will force people to look for tools to preserve the value of their portfolios. Bitcoin has already proven itself in that role, so it is likely that people will spend their money on cryptocurrencies as well.


Charts of the US dollar money supply, gold price, S&P 500 Index and Bloomberg Index

Unfortunately, not everyone remains so optimistic about the major cryptocurrency. For example, some UK politicians are openly critical of digital assets. And local financial regulators aren’t happy about things in the cryptosphere either.

Inflation dynamics in the US

The previous day, UK MPs called on the Financial Conduct Authority (FCA) to restrict the use of the terms ‘invest’ and ‘investment’ by cryptocurrency firms for promotional purposes. Specifically, the appeal was sent to FCA chief executive Nikhil Rathi. The main complaint is that customers of cryptocurrency companies are allegedly given a “false” impression that their investment in digital assets amounts to an investment in large companies or funds.

West Worcestershire Conservative MP Harriett Baldwin separately highlighted the FCA’s failure to stop fraudulent promotions and even accused the regulator’s leadership of abetting criminals.

Your website publishes a list of unregistered crypto-asset companies for anti-money laundering purposes. In theory, this should be beneficial, but the information published is simply used by those who want to launder money.


We do not agree with the accusations that the cryptocurrency industry is being used en masse for fraud and tax evasion. There is no doubt that this is the case, but the prospects and benefits of the digital asset niche already outweigh any possible actions of its dishonest representatives. On the whole, such a view is long outdated - especially given the recognition of Bitcoin as official tender in El Salvador on September 7, 2021.


FCA head Nikhil Rathi

Rathi has assured that the FCA is currently looking into the matter, as well as anticipating new powers in terms of regulating crypto advertising. However, unless these new powers are put into practice, there is little the main regulator can do.


Once again, we are reminded that any forecasts in the cryptocurrency niche do not have to come true and analysts can easily be wrong. As such, you should rely solely on your own analysis of what is happening - and make your investment decisions accordingly.

That said, on the whole, this logic by Bloomberg Intelligence representatives seems reasonable. At least in the past, Bitcoin did save investors from inflation and also brought much higher returns compared to traditional investment vehicles.


Look for even more interesting things in our millionaire cryptochat. There we will talk about other topics related to the world of blockchain and decentralisation.