Antoni Trenchev is bullish Bitcoin will trade higher this year, possibly hitting $100k in the summer.
He believes institutional adoption and “cheap money” are key to pushing BTC prices higher.
Antoni Trenchev, the co-founder of the crypto lending platform Nexo, argues that the next six months could see Bitcoin price surge to the psychological target of $100,000.
Bitcoin failed to reach the $100k mark in 2021, fading its bull run in November when it hit the all-time high of $69,000. The miss saw bold predictions for the flagship cryptocurrency to reach the milestone before the end of the year rehashed for a fresh bid in 2022.
Trenchev isn’t alone in calling for a BTC price in the six-figure zone. Last week, El Salvador president Nayib Bukele also made this call, noting in via Twitter that the year will also see two other countries adopt the benchmark cryptocurrency as legal tender.
2022 predictions on #Bitcoin:
•Will reach $100k
•2 more countries will adopt it as legal tender
•Will become a major electoral issue in US elections this year
•Bitcoin City will commence construction
•Volcano bonds will be oversubscribed
•Huge surprise at @TheBitcoinConf
— Nayib Bukele 🇸🇻 (@nayibbukele) January 2, 2022
But while his prediction has Bitcoin at the landmark target by end of the year, Nexo’s Trenchev says it’s possible the threshold could be breached even earlier. He told CNBC’s “Street Signs Asia” that pioneer cryptocurrency could be trending at $100,000 by mid-year.
Inflation hedge and “cheap money”
Trenchev is looking at two scenarios that could aid Bitcoin’s upward price trajectory. He sees a spike in institutional investment as a boon for the industry, with inflows into Bitcoin aiding the bullish case. On this, he suggests inflation will see a growing number of investors seeking a hedge asset like Bitcoin.
He also believes there’s a lot of “cheap money” ready to come into crypto, despite this likely to be upended by Fed interest rate hikes.
Noting that he holds a “contrarian” view, the Nexo boss believes the money will flow into Bitcoin as an inflation hedge. He looks at the scenario where equities and bond markets take a hit as soon as the central bank hikes the interest rates.
Yet, according to him, there hasn’t been “much political will” for an extended correction in the legacy markets, which could play out in support for “cheap money” flowing into Bitcoin.
Nexo launched its crypto lending service in 2018 and says on its website that its available in more than 200 jurisdictions, with over 2.5 million customers.
In the market, Bitcoin currently trades around $46,260 after breaking below $50,000 once again.