• Antoni Trenchev (Executive Firector) of Bulgaria’s crypto bank, believes the event is possible because of the interaction of many factors.
• But, he believes the cryptocurrency may be subject to a crash even before its momentum gains.

Antoni Trenchev is the executive director at Nexo Partners cryptocurrency lending company. He believes (BTC), could surpass $100,000 in 2018. This belief stems from a number of factors which could all come together to increase the value of this leading asset.

Speaking to CNBC, Trenchev asserted he also believed that, before this happens, the price of the world’s largest cryptocurrency by market capitalization could sink, along with the entire financial market, as the US Federal Reserve tightens its monetary policies.

But he warns that an eventual “crash” in the stock market could force the Fed to once again relax exchange rates and adopt stimulus measures to avoid another recession.

BTC: Despite all the obstacles, optimism

In order for the crypto bank executive’s predictions to come to fruition, Bitcoin must first overcome a series of obstacles affecting the cryptocurrency market, including the fragmentation of regulatory policies at a global level, and the high volatility of the digital currency.

According to crypto industry experts, there is a possibility of a new bull market for Bitcoin. The high level of inflation in Europe (USA) and Americas, along with the increased adoption by institutional investors of BTC are just a few reasons.

Despite his optimistic views on the future of Bitcoin’s prices, Trenchev claims to be “concerned” about the cryptocurrency’s short-term prospects. Nexo CEO explains that BTC could fall after the Fed’s first steps this month.

However, he speculated that this situation could “give cryptocurrencies a greater boost,” as the “crash” in stocks would probably force the U.S. central bank to loosen its monetary policy “in no time”.

If Trenchev’s forecast is correct, the price of Bitcoin could double within the next 12 months. A similar prediction was made by Trenchev in January 2020. He predicted that BTC would reach $50,000. “Everyone was laughing at me,” he remarked.

While Trenchev’s prediction did not quite come true, the price of the market leading crypto climbed to highs of $29,000 in December 2020, up from a low of $6,884, thus representing an increase of 426%. It wouldn’t be until two months later, in February 2021, that BTC would manage to exceed $50,000.

The Flipside

• Antoni Trenchev’s prediction coincides with the announcement made by Nexo and Mastercard’s this week about the launch of a crypto-backed credit card.

What You Need to Care About

• Recent trade volumes on the cryptocurrency market have been less than usual. CNBC spoke with Paolo Ardoino, Bitfinex CTO. He explained that this is due to uncertainty in the cryptocurrency market.
• Additionally, institutional investors and whales who can single-handedly move the market are waiting for an acceptable margin to grow before they take action.
• A recent Nasdaq survey found that U.S. financial advisers continue to be interested in Bitcoin and other cryptocurrency.

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