Cryptocurrencies Steady as Outlook for 2022 Remains Bright
13 Dec 2021 · 3rd Party Analysis
- The Crypto market is steady early Monday with bitcoin price trading near $50,000
- A Bloomberg report says the outlook for digital assets remains highly positive
What’s Trading in Crypto Markets?
Cryptocurrency markets are trading sideways in the early hours of Monday market action. In detail, the price of the leading digital asset, bitcoin, is now floating slightly above $49,000 after peaking at $50,700 on Sunday.
Also, Ether, the second-biggest cryptocurrency, slipped earlier today to levels near $4,050. Over the weekend, however, the Ethereum network’s native coin gained more than 8% to reach near $4,200 per coin.
Still, major tokens remain well-bid as the year comes to an end. Despite the recent fall in early December, the price of Ether has rallied more than 500% from January to the current market price. In addition, bitcoin has been lagging behind with an annual increase of roughly 70%.
What to Expect in the Markets?
In that context, and as cryptos transition to 2022, a Bloomberg report has high hopes for the fast-developing market. More specifically, analyst Mike McGlone from Bloomberg Intelligence, predicts bitcoin could reach $100,000 in 2022.
“Bitcoin appears to be on a trajectory for $100,000,” analysts say. “A paused, corrected, and refreshed bull market is how we see bitcoin approaching 2022.”
Further, the highly-anticipated regulatory stance from US lawmakers is expected to be in favour of digital assets. In turn, crypto regulations could increase the popularity and legitimacy of the emerging market.
“We expect the U.S. to embrace cryptocurrencies in 2022, with proper regulation and related bullish price implications,” the report says.
Moreover, analysts at Bloomberg said bitcoin hitting $100,000 is “a question of time,” as adoption continues to grow.
“We see it as more of a question of time, notably due to the economic basics of increasing demand vs. decreasing supply.”
Dive Deeper in the Financial World
Meanwhile, stocks and currency pairs are experiencing a quiet trading session on Monday as investors shift focus to Wednesday. This said the Federal Reserve gathers for its two-day meeting that concludes Wednesday with a conference by Chair Jerome Powell.
In the meeting, Fed officials will discuss whether it is necessary to unwind the monetary stimulus at a faster pace than announced. Previously, Mr. Powell said the central bank will end the $120 billion in monthly stimulus by mid-2022.
Now, however, with looming inflation, the bank is pressed to act quicker in order to cool down an overheating economy.
Against this backdrop, financial markets could experience increased volatility this week as traders digest Wednesday’s announcements. Anything surprising, like an earlier-than-planned interest rate hike, could fuel sharp swings in various asset classes like stocks and currencies.
Today, US futures remain positive, ready to extend their gains from last week. More specifically, Dow futures were up about 0.3% after the 30-stock index gained 4% last week. In addition, the broad-based S&P500 index closed at a record high Friday.