As stated in data from Coin Metrics, the world’s biggest cryptocurrency by market cap was trading at $46,170.43 as of 8:42 p.m. ET Monday.
As posted on its website, the firm is declared the world’s most prominent lending institution in the digital finance industry. It stated that the company has published more than $6 billion in credit and manages assets for more than 2.5 million users worldwide.
Bitcoin has primarily been a champion in the epidemic era, growing more than 60% in 2021 despite being far off its record high of about $69,000 earlier that year. In comparison, the S&P 500 increased almost 27% during the same period, while the Dow and Nasdaq gained 18.73% and 21.39% for the year, respectively.
Not everyone is as bullish as Trenchev
Some experts have cautioned that bitcoin may hover for a steep decline in the coming months. Carol Alexander, professor of finance at Sussex University, spoke she sees bitcoin tanking as low as $10,000 in 2022, virtually tapping out all of its gains in the past year and a half.
Lingering regulatory scrutiny on the sector and wild price swings could also mull on the outlook for bitcoin.
On his part, Antoni Trenchev of crypto lender Nexo expressed there were “two simple reasons” why he sees significant gains ahead for bitcoin.
One is that institutions are “building out their treasuries” and sufficing it with the cryptocurrency, he declared, without delivering any instances. Firms such as MicroStrategy and Square have known cases of companies that have purchased massive amounts of bitcoin.
Another cause is his prediction that “cheap money” is here to stay, a boon for cryptocurrencies.
His remarks come despite anticipations the Federal Reserve could increase interest rates several times this year for the first time in the pandemic era as the U.S. central bank seeks to fight inflation. The Fed was among major central banks that took unprecedented monetary easing steps in 2020 to keep financial markets floating during the epidemic’s early days.
