In an interview of Bloomberg Technology Antoni Trenchev, the co-founder of the cryptocurrency lending platform Nexo, tells us why he still believes in bitcoin (BTC), despite the drop of more than 70%.
At the time of writing, bitcoin has fallen sharply again and we are seeing a price level that we have not seen since 2020. The price is currently at $19,000, which is already below the peak of the 2017 bull market.
Bitcoin to $100,000
Trenchev made another remarkable prediction in January. In it, he indicated that bitcoin would have reached $100,000 within six months. As we know by now, this did not materialize. Bloomberg asked Trenchev about this prediction, saying:
“I’m sticking to my gut and aiming for $100,000 within 12 months from now. This will by no means be the craziest thing bitcoin has ever done.”
“The $20,000 Won’t Break”
Bitcoin has been falling hard for weeks, but Trenchev was still confident in it. He indicated that he thinks bitcoin is most likely to hold the USD 20,000 support, or the peak of 2017, unless something drastic changes on the macroeconomic front.
“I think all the negativity with all the solvency issues and the pressure we saw in the market has already been priced in. I think there is a very good chance that these levels will hold around USD 20,000, which happens to be the previous all-time highs from the previous bull cycle that ended in 2017-2018.
Chances are we’ll see a relief rally here, but it also depends on how the overall risky asset performs. You can’t let the S&P500 fall 3% a day and expect a heavy rally in Bitcoin.” said Trenchev
In the meantime, we know that bitcoin did break this USD 20,000 mark and that this was partly driven by the macroeconomic factors.
Bull market is coming, according to Trenchev
Still, Trenchev thinks it will all work out for bitcoin. The number 1 cryptocurrency in the world has experienced this before and has come back stronger every time. This is also why he expects another bull market.
“The last time we saw this kind of volatility in bitcoin was in March 2020 and we lost about 50% intraday. From those levels, it moved up 10x and reached levels of $50,000. So after deleveraging and reducing industry risk, I think we’ll be back in a rampant bull market.”
This is the positive message we need in these trying times.