Thinking that we are at the beginning of the road for Bitcoin and Ethereum, the number 1 and 2 of the crypto market, Bloomberg analyst Mike McGlone expects the two largest cryptocurrencies to continue to appreciate due to supply-demand dynamics.

At the beginning of January, Mike, who made Bitcoin and Ethereum price predictions for 2022, said that Bitcoin would reach $ 100,000, while emphasizing that Ethereum would exceed $ 5,000.

Following the recent bearish movements, Mike McGlone renewed his predictions on Twitter.

   "#Bitcoin and #Ethereum remain in early adoption days, with increasing demand vs. declining supply and related price implications. Our bias is why complicate it -- unless something unlikely reverses the proliferation of the nascent technology, prices should rise over time."

mike mcglone bitcoin ethereum supply

The senior strategist expects the two largest cryptocurrencies to continue to appreciate due to supply-demand dynamics. McGlone believes that even just a black swan can stop the spread of these cryptocurrencies.

Earlier this month, the analyst repeated his prediction that Bitcoin and Ethereum will reach $100,000 and $5,000 respectively by the end of 2022. In December, McGlone predicted that Bitcoin would outperform the US stock market.

He expects Solana and Binance Coin (BNB) to stay in the top five along with Bitcoin, Ethereum and Tether. At the same time, McGlone is highly critical of Dogecoin and Shiba Inu. He recently said that for blue chips to thrive, the market needs to be cleared of such meme coins.

Fed up with inflation, the US Federal Reserve is seen as the biggest hurdle for cryptocurrency bulls. Goldman Sachs recently said that Bitcoin is now more vulnerable than ever to future interest rate hikes as it tends to trade incrementally with traditional financial assets.

Bitcoin and Ethereum fell 44.67% and 46.16%, respectively, from their record highs. Earlier this week, the top cryptocurrency dropped below $33,000 and pushed the entire market down significantly.

In his research note published in early January, McGlone wrote that $30,000 could be the new $3,000 level for Bitcoin, citing the crash that occurred in December 2018. Last September, he correctly predicted that a futures-based Bitcoin exchange-traded fund would be approved in October.