Bitcoin is going to reach $100,000 by the middle of 2022 according to Antoni Trenchev, the founder of crypto lending platform, Nexo. Bitcoin which he dubbed “Gold 2.0”, he said, will exceed expectations as it has often done.
He made the prediction while speaking with CNBC today. The Nexo founder and former member of the National Assembly of the Republic of Bermuda noted Bitcoin has exceeded the expectations of investors and the broader community as it “outperforms significantly” every time it is written off.
The key drivers to a $100,000 price
According to Trenchev, he remains bullish on Bitcoin reaching $100,000 for two key reasons. For one, institutional investment has been ramping up in the Bitcoin market. He noted that institutional investors have been quietly adding Bitcoin to their treasury and are expected to continue doing so.
His second reason for the price projection is the prevailing “macroeconomic realities.” Trenchev does not think that inflation will let economies in its grasp go anytime soon, which is a great thing for Bitcoin that has been proven to be an inflation hedge.
We see institutional adoptions persevere quietly, companies building out their treasuries, filling it with Bitcoin. And also, the broader theme of macroeconomic realities and cheap money, in my opinion, is here to stay, which is great for crypto, which is an inflation hedge and gold 2.0.
Trenchev further explained that contrary to what a lot of analysts thought, he did not think inflation would abate soon because he was anticipating a dip in the stock market once the US Federal Reserve projected interest rate hikes hit the market.
Trenchev also commented on his expectations for Bitcoin and cryptocurrency adoption by countries of the world. He predicts that the next major nation-state adoption of Bitcoin as a parallel currency, after El Salvador in 2021, is likely going to come from Latin American countries, where they have fractured economies.
I think Latin America is a poster child for what you just described. You know, economies with some difficulty in managing their own currencies, and their respective central banks facing some challenges. So, definitely all of them are potential candidates for adopting cryptocurrencies as legal tender.
The price of Bitcoin continues to face an arduous climb
The price of Bitcoin is currently trading at around $47,277, down 0.02% on the day. Within the last 7 days, the price of Bitcoin has reached a high of just under $52,000. That notwithstanding, several analysts are still highly optimistic that Bitcoin will reach a price target of $100,000 within 2022. To do this, Bitcoin will have to surge about 71.5% from its current price.