Bitcoin might see a further upside trend and reach $100,000 in 2022, says the founder of cryptocurrency lender Nexo.
According to Antoni Trenchev, Bitcoin will reach $100,000 by mid-2022.
According to data from Coin Metrics, Bitcoin traded at $46,170.44 as of 8:43 p.m. ET Monday.
Co-founder and managing partner at Nexo, Trenchev, told CNBC that in his opinion, the world’s biggest crypto would reach $100,000 this year. According to its website, the company claims to be the world’s largest lending organization in the digital finance industry. The company issued more than $6.5 billion in credit and managed assets for over 2.6 million users worldwide.
Bitcoin has been a winner in the pandemic era, increasing over 60% last year. In comparison, the S&P 500 grew nearly 28% during the same period, while the Dow and Nasdaq achieved 18.74% and 21.38% for the year.
Some bearish opinion
But not everyone is as optimistic as Antoni Trenchev.
Some experts believe that bitcoin might experience a steep drop in a few months. Professor of finance at Sussex University Carol Alexander said she expects bitcoin to fall to $10,000 in 2022.
Trenchev also mentioned two simple reasons for significant gains for bitcoin in the future. As one of the reasons, he said that institutions are filling their treasuries with cryptocurrency. Square and MicroStrategy are examples of companies that have bought massive portions of bitcoin. Another reason is his opinion: the possibility of cheap money staying here for a while.
Despite expectations that the Fed could raise interest rates this year for the first time during the pandemic, he stated his opinions regarding crypto. The Fed took unprecedented monetary easing steps two years ago to keep financial markets floating at the pandemic’s beginning.