Without a thousand doubts – Some crypto personalities continue to hold bitcoiners’ hopes for a bitcoin (BTC) to $ 100,000. The co-founder of the Nexo platform has also engaged in the classic exercise of defending this thesis of a six-figure bitcoin for this year 2022.
Bitcoin at $ 100,000 for the summer of 2022: a daring bet on bitcoin
In his Jan. 3, 2022 intervention on CNBC’s Street Signs Asia show, Nexo co-founder Antoni Trenchev shared his optimistic forecast a bitcoin at $ 100,000, “probably around the middle of the year”.
Nexo is a crypto lending platform that claims on its website to have issued over $ 6 billion in credit, and manages assets for its 2.5 million+ users around the world. The company also offers loan services guaranteed by non-fungible tokens (NFTs).
Trenchev goes to countering investors who bet against bitcoin. He believes that the latter “significantly outperforms” “every time investors and the community at large give up bitcoin”, as in 2020 “with an increase of almost 1000%, and in 2021, with an increase of 63% ”.
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Concretely, how could bitcoin reach the $ 100,000 mark when it cannot even recover the $ 50,000 currently? Trenchev is banking on the fact that the institutions are in the process of ” replenish their cash flow », By integrating bitcoin.
He further bets that “cheap money” be here to stay. Cheap money or cheap money in English, refers to low-interest credit, with interest rates kept relatively low by the Federal Reserve (FED) in the case of the United States. The Fed wants to raise interest rates in 2022 to regain control of inflation that benefits bitcoin as a hedging asset, to the detriment of the US dollar.
Can the Fed in this case pull the price of bitcoin down by adopting these measures to fight inflation? Trenchev doubts about interest rate hikes by the US Federal Reserve, indicating that such action would cause stock prices and bond markets to fall, “and quite frankly, in recent years we haven’t seen a lot of political will to … push through some sort of correction in traditional financial markets ”.
Bitcoin at $ 10,000 according to a professor: why could Antoni Trenchev still be right?
These bitcoin-optimistic Trenchev analysts are the opposite those of Carol Alexander, professor of finance at the University of Sussex. Professor Alexander predicts instead a bitcoin falling to $ 10,000 in 2022, thus erasing all the gains of the end of 2020 and of the year 2021.
In this case, does Trenchev overestimate the ability of bitcoin to reach six digits in 2022? Its forecasts are based on the factors contributing positively to increasing demand for bitcoin, thus filling the gaps in PlanB’s Stock-to-Flow.
Its analyzes are also based on facts already observed on the markets. 2020 and 2021 have seen a growing number of institutional investors and businesses dive into bitcoin. This is particularly the case with MicroStrategy, which pursues an aggressive bitcoin accumulation strategy. FTX crypto exchange CEO Sam Bankman-Fried said on January 3, 2022 that clear cryptocurrency regulations “would help institutional adoption a lot.”
Nexo is not the only one to place bitcoin at $ 100,000 in 2022. He thus defends this forecast which seems very optimistic for the moment, alongside Bloomberg’s Mike McGlone or by the President of El Salvador, Nayib Bukele.
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