The Bitcoin Foundation chairman suggests inflation and insatiable appetite by governments to print fiat money could help Bitcoin rally above the highly anticipated level of $100,000, gaining by 300% or more to breach the six-digit barrier in 2022.
Brock Pierce, billionaire entrepreneur and one of cryptocurrency’s pioneer adopters, is projecting a bullish outlook for Bitcoin next year.
The Block.One co-founder believes that despite Bitcoin’s current struggles, the next twelve months could be pivotal in seeing the benchmark cryptocurrency pack fresh upside momentum.
But he’s not just thinking of BTC hitting a new all-time high above $69,000. He thinks the market could witness a breakout beyond the $100k barrier, with mitigating external factors pushing the digital asset even higher along the six-digit rail.
The former US presidential candidate shared his prediction during an interview on Fox Business.
Inflation and financial uncertainty to add to volatility
Pierce believes that Bitcoin’s price could get some tailwinds from the never-ending urge to print more currencies. He looks at this factor as one of the primary drivers of Bitcoin price in the future, more than even growth within the broader crypto market.
The entrepreneur says Bitcoin’s volatility is another factor, noting that the cryptocurrency largely doesn’t act as a “hedge per se.” He notes that unlike gold or real estate, the digital asset is more risk-on, but does excite for the one reason that it does offer huge returns.
He explained that continued rising inflation and financial uncertainty could be just the driving factors that push Bitcoin prices higher.
“I would not be surprised if we saw a Bitcoin price next year over $100,000. It’s even conceivable that it can break $200,000 for a moment,” he noted.
In this regard, it’s probable Bitcoin could see a 300% or more rally before cooling off.
Pierce’s sentiment mirrors several others who see 2022 as a year in which cryptocurrencies could yet see more gains. His comments about the need for proper regulation in the crypto space is also a topic touched upon by various industry and market players, including FTX CEO Sam Bankman-Fried and Cardano founder Charles Hoskinson.
Bitcoin is trading just above $48,000 as of writing, up nearly 1.5% on the day but about 5% down over the past week.
BTC/USD is also nearly 31% down from its peak of $69,044 reached in November. However, the digital asset has outperformed US equities with over 75% gains in 2021, compared to around 28% for the S&P 500 and 22% for Nasdaq.