Bitcoin to Soar to $100K and Gold to $2K in 2022: A Deflationary Forecast

Bitcoin and Gold’s Bright Future

According to Bloomberg Intelligence, both Bitcoin and gold are positioning themselves for a hefty rise in 2022. Senior commodity strategist Mick McGlone predicts we might see $100,000 Bitcoin and $2,000 per ounce gold as declining inflationary pressures ripple through global markets.

Understanding Deflationary Forces

With inflation hogging the headlines recently, Bitcoin has faced scrutiny over its performance. The cryptocurrency experienced a significant 39% drawdown from its all-time highs, leaving some critics questioning its status as a reliable hedge against inflation.

In contrast, McGlone argues that as inflation peaks, we can expect a shift towards deflationary conditions, positively impacting both Bitcoin and gold prices. Think of it as a party where only the last remaining guests—gold and Bitcoin—end up enjoying the festivities.

The Role of Commodities and Interest Rates

McGlone’s forecast stems from the observation that commodities like oil are likely to retreat. As he pointed out in a tweet, projected prices for crude oil could fall to around $50 per barrel while gold could reach the aforementioned $2,000 level.

• Commodities are peaking – This is great news for Bitcoin and gold!
• Declining treasury yields – Suggests deflationary trends might take hold in 2022.

Buckle up as we ride the storm of macroeconomic changes!

The Bitcoin vs. Gold Debate

This battle has been brewing like a fine wine left too long in the cellar. While Bitcoin enthusiasts argue for its future dominance, gold enthusiasts like Peter Schiff raise the alarm on inflation.

“How long before investors realize that even if the Fed tapers QE and raises interest rates, it’ll be too little too late to derail this inflation juggernaut?” Schiff questioned, indicating that if the Fed doesn’t take decisive actions, inflation might get, as he puts it, “medieval.” Talk about a battle of the titans!

Conclusion: What Lies Ahead?

The next 12 months are poised to be pivotal for both Bitcoin and gold. As we navigate through potential deflationary forces, both assets could experience significant advances, reshaping the investment landscape. Will we see a world where Bitcoin stands as a digital gold? Only time will tell!