Bitcoin could surge as high as $100,000 by mid-2022, says Antoni Trenchev, Co-Founder and Managing Partner at Nexo. The cryptocurrency lending platform has issued more than $6 billion in credit. It manages assets for over 2.5 million users across the world.
Analysts see bitcoin as a winner in a world where the COVID-19 pandemic has hit economies. The cryptocurrency has gained more than 60% in 2021 despite being far from its $69,000, a record which it had set earlier in the year. Looking at BTC’s gains and losses, the market is bullish.
However, experts are quick to warn that bitcoin can slip drastically. Carol Alexander, a professor of finance at Sussex University, believes BTC will fall steeply to $10,000. She warns that it will wipe out all of its gains. But Trenchev is sticking to his belief and enthusiasm for bitcoin. He explained that institutions are building out their treasures. They are filling it with cryptocurrency, with present examples being MicroStrategy and Square. These two companies are purchasing bitcoins in troves. Trenchev says investors and firms, alike, see cryptocurrency as “cheap money”. And this is driving the crypto boom.
The enthusiast’s optimism is quite catchy. But the market could definitely be caught in a whirlpool if the Federal Reserve raises interest rates several times this year. This is likely to happen as the US central bank will tackle inflation head-on. Since the advent of the COVID-19 pandemic in 2020, the financial institution hasn’t done much. It has been taking precautionary measures to keep financial markets afloat.
Trenchev, firmly holding onto his belief, believes that even if the interest rates are raised, it will go into bonds and equities. He pointed out the lack of political will to correct the traditional financial markets.