According to Nexo co-founder Antoni Trenchev, the new year will cause massive price movements for Bitcoin. Trenchev noted that BTC will reach $100,000 thanks to increased institutional adoption. Trenchev voiced his thoughts on the leading cryptocurrency on CNBC’s “Street Signs Asia”. Here are the details.
Bitcoin had a great year in 2021. Despite its wild volatility, it surpassed $1 trillion in market cap for the first time last year. BTC was primarily a winner during the pandemic period. It gained almost 70% in 2021 despite another ban from China. But right now, BTC is far from the record level of around $70,000.
Besides, 2021 marked the beginning of mainstream adoption for Bitcoin with a few firsts. While El Salvador adopted Bitcoin as its national currency last year, the BTC price and hash rate hit all-time highs.
Additionally, Morgan Stanley became the first major US bank to offer its clients access to Bitcoin funds at the beginning of last year. Later, the first US futures-based Bitcoin ETF was launched, paving the way for endless opportunities.
Nexo’s co-founder also believes that BTC has achieved a lot since its inception. He has no doubt that the asset is an inflation hedge that will be a boon to many economies.
In addition, Trenchev believes that companies such as MicroStrategy and Square have contributed significantly to Bitcoin’s success. Trenchev also believes that “cheap loan” is with us and thinks it will be good for crypto:
“Cheap credit, which has tremendous effects on cryptocurrencies, is not going anywhere anytime soon because the Fed does not have the backbone to make decisions that will cause a negative reaction in the bond market and cause a 10-20 percent drop in stocks.”
Trenchev predicts that 2022 will be turbulent, but Bitcoin will reach $100,000 by the end of June.
“I think the Bitcoin price will reach $100,000 this year, probably by mid-year.”
Bitcoin predictions in 2022
Despite Tranchev’s comments, some experts are unsure of Bitcoin’s uptrend. The experts in question warned that BTC will fall further.
Carol Alexander, professor of finance at the University of Sussex, said that Bitcoin will go red this year. Moreover, he noted that it could drop as low as $10,000. He stated that this should happen due to the wild price fluctuations weighing on Bitcoin.
Famous crypto trader Michael Poppe, on the other hand, thinks it would be beneficial for investors to follow current short-term resistance and support levels.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.