Antoni Trenchev, the CEO of Nexo, believes Bitcoin could hit $100,000 within a year, and surge above $100,000 within 12-months. He expressed concerns about the popular crypto’s short-term prospects. Trenchev says Bitcoin might fall in tandem with traditional financial markets as the Federal Reserve begins unwinding its massive monetary stimulus program.
He also believes that it may give further impetus to crypto. Trenchev said a crash in stocks would mean that the US central bank would go back to ease in no time. The investor had predicted in January 2020 that Bitcoin’s price would top $50,000 by the end of the year. He highlighted that everyone was laughing at his forecast then. It should be noted that although BTC didn’t top $50,000, it struck a high of just over $29,000 and eventually surged past $50,000 in February 2021.
Crypto enthusiasts say the market has matured and there is ample liquidity now as major institutions like Jane Street and Jump Trading are buying it. Moreover, crypto whales like Terra Labs co-founder Do Kwon are buying millions of dollars worth of Bitcoin believing it could one day be a future reserve currency.
However, the global regulatory environment remains fragmented. The crypto market remains very much volatile. And now analysts say Bitcoin is heavily correlated to the stock market – particularly to the Nasdaq index.
Paolo Ardoino, the chief technology officer at Bitfinex, highlighted that global uncertainty is in the crypto and stock markets. He said there are lower volumes on the crypto side, whereby Bitcoin volumes dropped over the past few weeks. This tells many whales and active market participants and participants that were active before are waiting on the sidelines.
Ardonio says Bitcoin could fall sharply below $40,000 and be well above $50,000 by the end of the year. He is very much bullish about the world’s favorite crypto.