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.
Bitcoin Expected to Hit $ 100,000 by Mid-Year
Antoni Trenchev, co-founder and managing partner of Nexo, a major cryptocurrency lender, shared his forecast for the price of bitcoin in an interview with CNBC on Monday. He said:
I think [bitcoin’s] going to reach $100,000 this year, probably by … the middle of it.
Nexo has issued over $ 6 billion in credit and manages the assets of over 2.5 million users worldwide.
The executive explained that there are “two simple reasons” why he expects to see big gains in the price of bitcoin.
First, he pointed out that institutions are increasingly putting bitcoin into their corporate treasuries. The company listed on Nasdaq Microstrategy, for example, bought 124,391 BTC for its cash.
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 frankly think as soon as we see a rate hike it’s going to be a dip in stocks and the bond market – and quite frankly, in recent years we haven’t seen a lot of political will to … correct on 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, Microstrategy CEO Michael Saylor predicts the price of bitcoin will hit $ 6 million. However, some people are more skeptical of the price of cryptocurrency, most notably Bridgewater Associates founder Ray Dalio.
