While the Bitcoin community has a similar mindset with respect to the potential of the digital currency in the long term, the viewpoint in the short term is somewhat diversified.
Antoni Trenchev, the Chief Executive Officer (CEO) of the crypto lending platform, Nexo has given a very bullish projection on the price of Bitcoin (BTC) for the year, noting the premier cryptocurrency could hit a $100,000 price mark. Speaking in an interview with CNBC, Trenchev said the prediction does not mean that BTC’s outlook is not bearish in the short term as the current global macroeconomic outlook is weighing down all financial markets.
In a bid to control the inflation that was ushered in since the emergence of COVID-19, the US Federal Reserve has been mulling tightening monetary policies and raising the interest rates to curb excesses in the economy. This move as showcased by many experts is bound to taper the growth of traditional stocks in the meantime, and Bitcoin is bound to bear the brunt of it as well, per its correlation with the Nasdaq 100 Index.
However, Trenchev believes any move by the Feds that eventually leads to the crash of stock will force the government’s hands to go “back to easing in no time,” a situation that will further benefit legacy digital assets like BTC.
Trenchev is not new to handing out predictions on BTC’s price. He predicted back in January 2020 that the coin’s price would touch $50,000 before the end of the year. While the coin only surged to $29,000 in December of that same year, about 11 months after in November 2021, it recorded its All-Time high (ATH) price record above $66,000.
While the timeline may be well disputed amongst prominent Bitcoin proponents, there is a broader consensus on the likelihood of the digital currency touching the $100,000 price mark in the near future.
Backing the Nexo CEO Predictions
While the Bitcoin community has a similar mindset with respect to the potential of the digital currency in the long term, the viewpoint in the short term is somewhat diversified.
In backing the short-term bearish outlook of the premier coin, Bitfinex CTO, Paolo Ardoino said in an interview with CNBC that not much price action should be expected this year.
“In this particular moment in time we are living under, I would say, global uncertainty in the markets, not just the crypto markets, also in the stock markets,” Ardoino said, “So we are seeing definitely lower volumes on the crypto side … bitcoin volumes have dropped over the last few weeks. So that is quite important as a metric because it tells many whales, many active market participants, participants that were very active before are waiting a little bit on the sidelines.”
With projections for the longer term looking golden, the Nexo CEO is positioning his firm to tap into the potentially positive demand that is being generated in the market. Nexo launched a crypto card in conjunction with Mastercard Inc (NYSE: MA) and DiPocket yesterday to allow its European users to spend without using up their crypto holdings.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
