The co-founder of crypto lender Nexo, Antoni Trenchev, believes Bitcoin (BTC) is on track to hit $50,000 by the end of the year.
In a new interview with Bloomberg Markets, Trenchev says the leading crypto’s notorious volatility is expected given the global economic backdrop and recent halving, and long-term thinking is necessary when investing in the emerging and risky asset.
“I stand by my prediction that I made with you guys earlier in January that Bitcoin is bound to reach $50,000 by the end of the year…
The truth is that Bitcoin is the only free market we have right now. It’s showing amazing resilience through this pandemic and the sell-off of risky assets, and this has happened without any external support. I would argue that Bitcoin right now is your bail-out-of-recession free card.”
Trenchev highlights Bitcoin’s status as the best performing asset of the last decade despite the fact that it has yet to reclaim its all-time high of $20,000, which was set back on December 17th of 2017.
He points to Bitcoin’s limited supply and the recent revelation that hedge fund legend Paul Tudor Jones is investing in Bitcoin as two core reasons for remaining bullish.
“We are positive, and we see the influx of new clients at Nexo coming to the realization that Bitcoin is here to stay, and it’s one of the best protection mechanisms against inflation…
In this moment of very, very aggressive quantitative easing, I think cryptocurrencies and especially Bitcoin come in as the exact opposite. With hard-coded events in the very fiber of what Bitcoin is, this quantitative hardening is the absolute opposite of quantitative easing, which is a fundamentally different thing and is only akin to gold.
And now, Bitcoin is glowing in its full glory, slowly but surely, based on this disinflationary curve of the Bitcoin supply, the unforgeable cost of producing it. I think the market and investors are coming to realize all these amazing properties of Bitcoin.”