In an interview with CNBC on Monday, Antonio Trenchev, the co-founder and managing director of cryptocurrency lending platform Nexo, said he is confident that Bitcoin (BTC) will not go below the $30,000 mark.
$30k Is the Floor for Bitcoin
Trenchev noted three reasons for his confidence in BTC remaining above $30k. The first factor he outlined was that there are a lot of institutional investors who are ready to step in if BTC should drop below the $30k to $35k mark. He noted that Nexo has a trading desk for such investors.
The Nexo co-founder also outlined that there are several other companies building critical infrastructure to onboard more users into the crypto industry. He argued that these products could potentially pave the way for further adoption and drive prices higher in the long-term.
“There are companies such as [Nexo] that innovate and bring out the important and crucial infrastructure that will drive the next cycle of institutional and widespread adoption,” he said.
Lastly, Trenchev noted that the United States Federal Reserve would step in if Bitcoin dropped below $30,000. The Fed is responsible for the regulation, maintenance and provision of banking services in the U.S.
Trenchev Bullish on BTC
Antonio Trenchev has always been bullish on BTC and believes the cryptocurrency would reach a market price of $100,000.
Earlier, the Nexo co-founder predicted that the price of bitcoin will hit $100k by June 2022 or before the year runs out. He noted that as many companies continue to adopt Bitcoin, its price will increase.
While it is still uncertain whether or not Bitcoin will trade at $100,000 in 2022, many companies and institutional investors continue to get onboard.
A recent analysis confirmed that Bitcoin has strong fundamentals, but that the cryptocurrency has failed to pull out of its bearish trends. Bitcoin has continued to struggle with “unfruitful” trading sessions in recent times.
At the time of writing, BTC was exchanging hands at $38,600, a long way from Trenchev’s $100k prediction.