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World NewsFounder of crypto lender Nexo says bitcoin could hit $100,000 in 2022

Founder of crypto lender Nexo says bitcoin could hit $100,000 in 2022

Bitcoin could see additional upside and surge as excessive as $100,000 by the center of 2022, based on Antoni Trenchev of cryptocurrency lender Nexo.

The world’s largest cryptocurrency by market cap was buying and selling at $46,170.43 as of 8:42 p.m. ET Monday, based on information from Coin Metrics.

“I think [bitcoin’s] going to reach $100,000 this year, probably by … the middle of it,” Trenchev, co-founder and managing associate at Nexo, advised CNBC’s “Street Signs Asia” on Monday. The agency claims to be the world’s largest lending establishment in the digital finance business, based on its web site. The firm has issued greater than $6 billion in credit score and manages property for greater than 2.5 million customers globally, it stated.

Bitcoin has largely been a winner in the pandemic period, rising greater than 60% in 2021 regardless of being far off its report excessive of round $69,000 earlier that yr. In comparability, the S&P 500 rose almost 27% throughout the identical interval, whereas the Dow and Nasdaq gained 18.73% and 21.39% for the yr, respectively.

But not everyone seems to be as bullish as Trenchev.

Some consultants have warned that bitcoin could also be poised for a steep drop in the approaching months. Carol Alexander, professor of finance at Sussex University, stated she sees bitcoin tanking as little as $10,000 in 2022, just about wiping out all of its beneficial properties in the previous yr and a half.

Lingering regulatory scrutiny on the sector and wild value swings could additionally weigh on the outlook for bitcoin.

Read extra about cryptocurrencies from CNBC Pro

On his half, Trenchev stated there have been “two simple reasons” why he sees huge beneficial properties forward for bitcoin.

One is that establishments are “building out their treasuries” and filling it with the cryptocurrency, he stated, with out offering any examples. Firms akin to MicroStrategy and Square are amongst recognized examples of corporations which have purchased huge quantities of bitcoin.

Another purpose is his prediction that “cheap money” is right here to remain — which might be a boon for cryptocurrencies.

His feedback come regardless of expectations the Federal Reserve could elevate rates of interest a number of occasions this yr for the primary time in the pandemic period because the U.S. central financial institution seeks to fight inflation. The Fed was amongst main central banks that took unprecedented financial easing steps in 2020 to maintain monetary markets afloat through the early days of the pandemic.

Admitting his “contrarian” view of lasting simple financial coverage, Trenchev stated most individuals probably “got it wrong” in their Fed charge hike expectations.

“I quite frankly think that as soon as we see a rate hike, it’s going to be a dip into equities and the bond market — and quite frankly, the last few years, we haven’t seen much political will to … power through any sort of correction in the traditional financial markets,” he stated.

— CNBC’s Ryan Browne contributed to this report.

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