During Thursday's trading session, the value of the first cryptocurrency is rising steadily. Bitcoin has gained 0.62% and is trading above a significant support level of $42,000 ($42,039).
Popular altcoins followed the strong growth momentum of the major digital currency. Ethereum jumped by 1.18% to $3,142, while Binance Coin surged by 2.74% to $476.
Meanwhile, the overall cryptocurrency market capitalization is currently hovering between $1.95 and $2.00.
During Thursday's trading session, Bitcoin did not pay attention to the key US stock indices drop at the end of Wednesday's session.
Meanwhile, virtual asset market participants plan to buy digital coins amid a downturn in the stock market, with crypto bulls actively holding levels of $40,000 for Bitcoin and $3,000 for Ethereum. Today it will be known if they can cope with this situation. So, the Nasdaq 100 and the Dow Jones 30 are back to their 200-day averages, which now determine the trend.
The volatile cryptocurrency market is the reason for experts to make the most unexpected predictions about the future of digital assets. For example, analysts at Quantum Fintech Group argue that the cryptocurrency market is now on the verge of a new super-cycle, which could result in it soaring to the $400,000 mark.
According to experts, the US Federal Reserve's policies and large-scale adoption of stablecoins will be the impetus for a new cycle.
Furthermore, the experts from Quantum Fintech Group think that the current situation of the virtual asset market correlates with the bull market situation in 2017. However, contrary to the last cycle, the widespread adoption of stabelcoins could stimulate a strong surge of cryptocurrency. Such a situation could result in a 10 times growth in the value of Bitcoin.
Bloomberg Intelligence senior commodities strategist Mike McGlone also claims a spectacular outlook for bitcoin in the coming year. He believes that the digital gold rally to $100,000 in 2022 will take place amid the end of the transition from a risky asset to a risk-free one.
According to the Bloomberg analyst, the only possible obstacle for Bitcoin to reach that target is the prospect of a monetary tightening by the Federal Reserve.
The US Federal Reserve intends to raise interest rates earlier and at a faster pace than expected. Such a move by the US regulator is attributed to the fast pace of economic recovery and persistently rising inflation.
Mike McGlone believes that the Fed's policy will markedly reduce the value of Bitcoin, as investors in the crypto market will focus on fixed-income assets, such as bonds. However, this phenomenon will be short-lived, and by the end of this year, Bitcoin prices will surge.
By the way, this is not the first time a Bloomberg crypto-enthusiast has made a positive prediction about Bitcoin. Previously, McGlone was even more optimistic, claiming that Bitcoin would rise to $400,000.
