Antoni Trenchev, CEO of crypto lending firm Nexo, predicts that bitcoin could hit $100,000 during 2022. The expert is sure that the process could hardly be violated by any factors.
Antoni Trenchev supposes that the surge in the asset could be preceded by a fall caused by a slump in "traditional financial markets as the Federal Reserve starts unwinding its massive monetary stimulus program." However, a "crash" in stocks could force the US regulator to go "back to easing in no time." This, in turn, will boost risk assets, primarily BTC.
Antoni Trenchev believes that the world’s biggest cryptocurrency will skyrocket to $100,000 within 12 months. However, most analysts are skeptical about such a forecast, emphasizing numerous obstacles in the crypto market. A further rise in bitcoin could be prevented by high volatility and the fact that the global regulatory environment remains fragmented.
Two years ago, Antoni Trenchev anticipated bitcoin’s appreciation up to $50,000 or higher. However, the prediction did not come true. By the end of 2020, BTC reached only $29,000, whereas the high of $50,000 was surpassed only in February 2021.
By the moment, the market has matured. Some crypto believers say that bitcoin and the crypto market itself have enough resources and liquidity to jump. In addition, such crypto whales like Do Kwon, the co-founder of blockchain firm Terra Labs, are purchasing millions of dollars’ worth of bitcoin. They believe that BTC could become a reserve currency.
Major Wall Street institutions like Jump Trading and Jane Street also support such an idea. They are flocking to digital assets, supposing that the future of the global market will closely depend on them.
According to some estimates, the BTC growth could be capped by a fragmented regulatory environment and high market volatility. What is more, bitcoin remains heavily correlated to the stock market, in particular the Nasdaq index.
Meanwhile, most stocks remain as volatile as the number one cryptocurrency. On April 18, BTC price was 40% lower than its record high of $68,990. Nevertheless, market players and analysts are still optimistic about bitcoin’s near future.
