dailyhodl.com
Nexo crypto lending platform co-founder Antoni Trenchev says he’s not turning his back on Bitcoin (BTC) despite BTC losing more than 70% of its value since late 2021.
In a new interview with Bloomberg Technology, Trenchev says Bitcoin experienced brutal price swings to the downside two years ago before rallying in a major way, and he anticipates BTC to manifest another bull cycle.
“The last time we had this type of volatility in Bitcoin and it lost like 50% intraday, it was in March 2020. Out of those levels, it went up 10x and reached levels of $50,000. So after the deleveraging and de-risking of the sector, I think we’ll be back in a rampant bull market.”
As the crypto markets remain in an extended downtrend dating back to last November, Trenchev thinks Bitcoin is likely to hold the $20,000 support level but also notes that any broader macroeconomic uncertainty will also impact BTC’s price action.
“I think all of the negativity with all the solvency issues and the pressure that we saw in the market is already priced in.
I think there is a very good chance that these levels around $20,000 hold, which coincidentally are the previous all-time highs of the previous bull cycle that ended 2017-2018.
There is a very good chance we see a relief rally here, but it also depends on how the overall risk-on assets are performing. You can’t have the S&P500 go down 3% a day and expect a heavy rally in Bitcoin.”
Back in January, Trenchev said he expected Bitcoin to reach $100,000 by the middle of the year. When pressed by Bloomberg host Matt Miller for his latest price prediction, the Nexo co-founder said,
“I stick by my guns and target of $100,000 within 12 months from now. This will not be by any measure the craziest thing that Bitcoin has done.”
At time of writing, Bitcoin is up 1.31% and changing hands for $20,560. BTC remains down 56.6% from its 2022 opening price of $47,292.