- Bitcoin could hit $100,000 within a year, predicted Antoni Trenchev, CEO of crypto lending firm Nexo.
- He said bitcoin could fall along with traditional financial markets as the Federal Reserve reverses its massive stimulus policy. But eventually, a stock “crash” could force the Fed back to a relaxationdid he declare.
- There are still headwinds for the crypto market as the global regulatory environment remains fragmented and digital currency still remains volatile
Bitcoin could hit $100,000 within a year, the CEO of crypto lending firm Nexo has predicted.
Antoni Trenchev told CNBC he believes the world’s largest cryptocurrency could exceed $100,000 “within 12 months”.
He said he was “worried” about bitcoin’s short-term outlook, suggesting it could fall in tandem with traditional financial markets as the Federal Reserve begins to unwind its massive monetary stimulus program.
But that could, in turn, “give crypto a boost,” he added, as a “crash” in stocks would likely mean the US central bank would eventually “return to easing in no time.” of time”.
If Trenchev’s predictions are correct, that would mean the price of bitcoin would more than double this year.
For what it’s worth, in January 2020, Trenchev predicted that the price of bitcoin would surpass $50,000 by the end of this year. “Everyone was laughing at me,” he says.
Trenchev’s prediction for 2020 did not come true. Bitcoin only managed to peak at just over $29,000 that year. But the cryptocurrency finally surpassed that $50,000 in February 2021.
Crypto believers say the market has matured and there is ample liquidity now that major Wall Street institutions like Jump Trading and Jane Street are flocking to digital assets.
Meanwhile, crypto “whales” like Do Kwon, the co-founder of blockchain firm Terra Labs, are buying up millions of dollars worth of bitcoin in the belief that it could become a future “reserve” currency.
Read also How to explain the fall of Bitcoin?
But there are headwinds for the market. The global regulatory environment remains fragmented and the crypto market remains volatile. In particular, bitcoin remains highly correlated to the stock market, especially the Nasdaq index. While stocks remain volatile, bitcoin could also become volatile.
Bitcoin is still around 40% off its all-time high of $68,990.90.
Other crypto executives are not expecting as much price appreciation this year.
“At this particular moment that we are living in, I would say, global uncertainty in the markets, not just in the crypto markets, also in the equity markets,” Paolo Ardoino, chief technology officer of Bitfinex, told CNBC. in an interview on Wednesday.
“So we are seeing significantly lower volumes on the crypto side… bitcoin volumes have dropped over the past few weeks. So that’s pretty important as a metric, because it indicates that a lot of whales, a lot of active market participants, participants who were very active before are waiting a bit on the sidelines.
The whales (or “Whales”), large investors capable of moving the market.
Ardoino said bitcoin could fall sharply below $40,000but he expects the digital currency to be “far superior” to $50,000 by the end of the year.
“I’m a bitcoin bullish person…I see so much happening in this industry and so many countries interested in adopting bitcoin that I’m really positive,” he said.