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Anthony Trenchev, co-founder and managing partner of Nexo, a major cryptocurrency lender, shared his Bitcoin price prediction in an interview with CNBC on Monday. He said:
“I think bitcoin will hit $ 100,000 this year, perhaps by … the middle of this year.”
Nexo has provided over $ 6 billion in loans and manages the assets of over 2.5 million users worldwide.
The executive explained that there are “two simple reasons” why he expects to see a large rise in the price of bitcoin.
First, he noted that institutions are increasingly placing bitcoin in their corporate treasuries. For example, Nasdaq-listed Microstrategy acquired 124,391 BTC for its treasury.
Another reason is that Trenchev expects the “cheap money” to remain, leading to higher cryptocurrency prices. The Federal Reserve is expected to raise interest rates several times this year. Wharton finance professor Jeremy Siegel recently predicted that “the Fed will have to raise rates far more times than the market expects.”
The Nexo executive added:
“I honestly believe that as soon as we see a rate hike, it will lead to a drop in stocks and the bond market – and frankly, in the last few years, we have not seen much political will to … survive any correction in traditional financial markets “.
Recently, El Salvador’s President Nayib Bukele also predicted that the price of bitcoin will reach $ 100,000 this year.
Meanwhile, Microstrategy CEO Michael Sailor predicts bitcoin’s price will hit $ 6 million. However, some people are more skeptical about the price of cryptocurrency, including Bridgewater Associates founder Ray Dalio.
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