The co-founder of crypto lending platform Nexo has believes that Bitcoin will reach $100K by mid 2022 due to the influence of institutional treasuries and an influx of cheap money by the Fed.
Speaking in an interview with CNBC’s “Street SIgns Asia”, Nexo’s Antoni Trenchev said that Bitcoin could see further upside and surge as high as $100,000 by the middle of the year.
I think [bitcoin’s] going to reach $100,000 this year, probably by … the middle of it.
Trenchev serves as a managing partner for Nexo, which claims to be the world’s largest lending institution in the digital finance industry, with more than $6 billion in credit issued and 2.5 million users globally.
Trenchev claimed there were “two simple reasons” for Bitcoin to post substantial price gains in the coming months. He noted that institutions are “building out their treasuries” with cryptoassets. He also predicted that the “cheap money” flowing from government reserves would continue in the near future, proving bullish for cryptocurrency.
As noted by CNBC, Trenchev’s comments came despite expectations that the Federal Reserve will raise interest rates several times this year for the first time in the pandemic era in an effort to curb inflation.
Trenchev admitted that his view was “contrarian” but ultimately consistent with where he saw the market going.
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.