Note that Bitcoin managed to outperform most traditional investment vehicles in 2021, even though the rate sagged in early winter. Specifically, its growth result for the year was 60 per cent. The digital asset’s closest competitor was oil with 55 per cent.

Returns on traditional assets compared to Bitcoin

In this regard, the good attitude of analysts towards Bitcoin is quite predictable. After all, it has proven to be the leader in terms of growth on numerous occasions.

Michael McGlone himself has commented quite often on what is happening in the digital asset industry. In particular, in the first half of December 2021, he made it clear that he no longer believes in the growth of BTC to 100 thousand dollars by the end of that year. This target has now moved on to this year.

What will the price of Bitcoin be in 2022?

The Fed may raise lending rates this year after a long period of economic stimulus on the back of the COVID-19 pandemic. Under such circumstances, we should expect the S&P500 stock index, which is at a high above its 60-month moving average for the past two decades, to decline, experts say.

S&P500 index rises over the past few years

That said, investors will be looking for assets to diversify risk – Bitcoin could be one such asset. Here is the expert’s rejoinder, in which he shares his view of what is happening.

Overbought markets are already commonplace, but assets like Bitcoin are new and a leader in attracting popularity. The question here is how long the global bullish trend will continue. So far, cryptocurrencies are leading it.


That is, the analyst is confident that if the global growth phase of the cryptocurrency market does not end, then digital assets will continue to outperform equities and other investments from the traditional economy.

This prediction is not surprising - especially given the year-end returns of many cryptocurrencies. As a reminder, some of them, among others, brought their investors more than 10 thousand percent profit. Here's the corresponding chart, which shows the final percentage of the asset's year-over-year growth in the right-hand column.


Graph of the various cryptocurrencies by month and for 2021 as a whole

According to Cointelegraph, the Fed plans to raise the lending rate three times this year and significantly reduce the amount of economic stimulus. For many analysts, the turn of events was unexpected – after all, support to the economy is winding down at a much faster pace than it was planned before.

At the same time, McGlone doesn’t see this scenario as much of a negative for crypto. The expert continues.

Cryptocurrencies are the best investment among all risky assets. Such assets help fight inflation and there is no reason for crypto investors to expect negativity from developments in the global economy.

And so McGlone thinks the reputation of digital assets will still come through, and investors will connect with them sooner rather than later. Then again, given the performance of various coins over 2021, it's really easy to believe in such a scenario.

Bitcoin price still falling after US Fed rate hike announced

Unfortunately, McGlone’s words are not yet backed up by an actual rise in BTC. Rather, on the contrary – after the announcement of the rate hike, Bitcoin’s price started falling even faster. Here is an hourly chart of the main cryptocurrency, which shows the current market downturn.

Hourly chart of Bitcoin rate


We don't think there is any reason to doubt the cryptocurrency's potential just yet. Certainly, the major cryptocurrency has seriously slumped from its all-time high, but this has happened before. Overall, digital assets may well continue to outperform equities and other traditional investments in terms of returns. But that doesn't mean investors should forget about risk-management tools.


Will the trend change in the near future? Keep an eye on the situation in our Millionaire Crypto Chat. We’ll talk about other blockchain-related topics there as well.