Antoni Trenchev is bullish Bitcoin will commerce increased this yr, probably hitting $100k in the summertime.
He believes institutional adoption and “low cost cash” are key to pushing BTC costs increased.
Antoni Trenchev, the co-founder of the crypto lending platform Nexo, argues that the subsequent six months may see Bitcoin value surge to the psychological goal of $100,000.
Bitcoin didn’t reach the $100k mark in 2021, fading its bull run in November when it hit the all-time excessive of $69,000. The miss noticed daring predictions for the flagship cryptocurrency to reach the milestone earlier than the top of the yr rehashed for a contemporary bid in 2022.
Trenchev isn’t alone in calling for a BTC value within the six-figure zone. Last week, El Salvador president Nayib Bukele additionally made this name, noting in through Twitter that the yr will additionally see two different nations undertake the benchmark cryptocurrency as authorized tender.
2022 predictions on #Bitcoin:
•Will reach $100k
•2 extra nations will undertake it as authorized tender
•Will turn out to be a serious electoral concern in US elections this yr
•Bitcoin City will begin building
•Volcano bonds will be oversubscribed
•Huge shock at @TheBitcoinConf
— Nayib Bukele 🇸🇻 (@nayibbukele) January 2, 2022
But whereas his prediction has Bitcoin on the landmark goal by finish of the yr, Nexo’s Trenchev says it’s potential the edge could possibly be breached even earlier. He told CNBC’s “Street Signs Asia” that pioneer cryptocurrency could possibly be trending at $100,000 by mid-year.
Inflation hedge and “low cost cash”
Trenchev is taking a look at two eventualities that would support Bitcoin’s upward value trajectory. He sees a spike in institutional funding as a boon for the business, with inflows into Bitcoin aiding the bullish case. On this, he suggests inflation will see a rising variety of buyers looking for a hedge asset like Bitcoin.
He additionally believes there’s a variety of “low cost cash” prepared to come back into crypto, regardless of this prone to be upended by Fed rate of interest hikes.
Noting that he holds a “contrarian” view, the Nexo boss believes the cash will circulate into Bitcoin as an inflation hedge. He seems to be on the state of affairs the place equities and bond markets take successful as quickly because the central financial institution hikes the rates of interest.
Yet, in keeping with him, there hasn’t been “a lot political will” for an prolonged correction within the legacy markets, which may play out in assist for “low cost cash” flowing into Bitcoin.
Nexo launched its crypto lending service in 2018 and says on its web site that its out there in additional than 200 jurisdictions, with over 2.5 million prospects.
In the market, Bitcoin presently trades round $46,260 after breaking under $50,000 as soon as once more.