Things are going to change rapidly for Bitcoin (BTC) according to Antoni Trenchev from Nexo, a cryptocurrency lender, and in a good way.
Trenchev believes that BTC is now on course to hit $100,000 by the middle of 2022, an ambitious outlook that will surely encourage another bull run if proven correct.
“I think Bitcoin is going to reach $100,000 this year, probably by the middle of it”, Nexo’s co-founder and managing partner told CNBC’s Street Sign Asia this Monday. The firm he manages self-styles as the largest lending institution in the digital finance sector.
His prediction could go either way. BTC has definitely benefited over the developments of the past year, posting an all-time record of $69,000 in 2021. However, Trenchev’s optimism has been met with a fair degree of skepticism as well.
Carol Alexander, a professor of finance at Sussex University, argued that BTC may actually slide to a low $10,000 in 2022, which could in turn wipe out any gains for investors.
There is also the way the world will be addressing BTC regulation to consider, with the developments in the biggest market possibly going either way.
Trenchev though has “two simple reasons” for trusting that BTC will inch up, not go down. First, he believes that institutions will want to continue building out their treasures, he explained, but he failed to specify which institutions those were.
Sure, there are MicroStrategy and Square who have purchased a lot of BTC and there is El Salvador using BTC as its national currency too. The other reason is “cheap money”, possibly talking about inflation as a greater motivator for more people to invest in crypto over FIAT.
Billionaire Thomas Peterffy was a crypto skeptic who is now advocating for investing 2-3% of one’s portfolio in crypto. Trenchev argued that as soon as the Federal Reserve hikes the rates, it will result in more people looking for alternatives.
“The last few years, we haven’t seen much political will to power through any sort of correction in the traditional financial markets”, Trenchev concluded.