The co-founder and managing partner of Nexo, a major cryptocurrency lender, has predicted that the price of bitcoin will be $100K by mid-2022. He highlighted “two simple reasons” why he is bullish about the price of bitcoin this year.
Antoni Trenchev, the co-founder and managing partner of Nexo, a major cryptocurrency lender, has shared his bitcoin price prediction in an interview with CNBC Monday. He said:
I think [bitcoin’s] going to reach $100,000 this year, probably by … the middle of it.
Nexo has issued more than $6 billion in credit and manages assets for more than 2.5 million users globally.
The executive explained that there are “two simple reasons” why he expects to see big gains in the price of bitcoin.
Firstly, he pointed out that institutions are increasingly putting bitcoin in their corporate treasuries. The Nasdaq-listed company Microstrategy, for example, has bought 124,391 BTC for its treasury.
Another reason is that Trenchev expects “cheap money” is here to stay, which would boost the prices of cryptocurrencies. The Federal Reserve is expected to raise interest rates several times this year. Wharton finance professor Jeremy Siegel recently predicted that “The Fed is going to have to hike many more times than what the market expects.”
The Nexo executive added:
I quite frankly think that as soon as we see a rate hike, it’s going to be a dip into equities and the bond market — and quite frankly, the last few years, we haven’t seen much political will to … power through any sort of correction in the traditional financial markets.
Recently, the president of El Salvador, Nayib Bukele, also predicted that the price of bitcoin will reach $100,000 this year.
Meanwhile, the CEO of Microstrategy, Michael Saylor, foresees bitcoin’s price reaching $6 million. However, some people are more skeptical about the price of the cryptocurrency, including Bridgewater Associates founder Ray Dalio.
How high do you think the price of bitcoin will reach this year? Let us know in the comments section below.