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Bloomberg Intelligence Predicts Proper Crypto Regulations in 2022

Crypto regulations will bring about a corrected and refreshed bull market in 2022, Bloomberg predicts naysayers to join this new asset class.

Proper Regulation Coming

  • Bloomberg published a report titled ‘Global Cryptocurrencies 2022 Outlook’ predicting the US to embrace cryptocurrency in 2022, partly incentivized by China’s ban. 
  • Proper cryptocurrency regulations will bring about related bullish price implications. 
  • The report identifies Bitcoin, Ethereum, and ‘crypto dollars’ to have a wider adoption and will overcome most ‘wobbles’. 
  • Decline in US Treasury stock bonds yields will shine the spotlight on Bitcoin and Ethereum.
  • Fiat currency has unlimited supply, but Bitcoin and Ethereum have limited supply. 
Source: Bloomberg believes that declining bond yields will favour the top two cryptocurrencies, Bitcoin and Ethereum

Crypto Allocations

Bloomberg adds in its report: 

“Past performance is no indicator of future results, but when a new asset class outperforms incumbents, naysayers have little choice but to join in. We see this process playing a primary role in 2022, as money managers may face greater risks if they continue to have no portfolio allocations to cryptos.”
  • Money managers are more at risk if there is no crypto allocation in their portfolios. 
  • Bitcoin and Ethereum will continue to have a mainstay in the crypto ecosystem as others jostle for the top positions. 
  • Shiba Inu and Dogecoin are clear indications that there are plenty of speculations in the crypto space.
Source: Shiba Inu ($SHIB) had a massive rally spurred by speculation but had since tumbled more than 60%

Bitcoin’s Bull Market

  • Bloomberg’s report also addressed the key question in everyone’s mind. Is the macro bull market for Bitcoin over?
  • The report states that Bitcoin is simply in a consolidating bull market. 
  • It is likely that the key support is around $50,000 and key resistance at $100,000 in 2022. 
  • Bitcoin has more fundamental underpinnings than gold. It is more than just a digital version of gold. 

The report also states:

“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.”

Ethereum to Lead 

  • Ethereum will lead the wave of digitalization, tokenization, DeFi, fintech, and Non-Fungible Tokens (NFTs). 

Although bullish on Ethereum, the report sees the value in Bitcoin, it says:

“Bitcoin is well on its way to becoming the global digital reserve asset, while Ethereum is being adopted as the collateral of the internet.” 

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