Bitcoin has gone through its third halving event, and miners’ block rewards have gone from 12.5 BTC to 6.25 BTC. While many believe that the halving was already priced in, most members of the community, including analysts, think that the halving will spike prices.
In a conversation with Bloomberg, CEO Antoni Trenchev of crypto lending company Nexo.io has doubled down on his earlier prediction of Bitcoin at $50,000 before the end of the year. According to him, factors are playing in Bitcoin’s favor.
Trenchev opined that authorities have pumped over $8 trillion into the financial markets in the past two years, suggesting that this destabilizes fiat and worsens inflation.
On the other hand, Bitcoin does the exact opposite. Describing Bitcoin as “unforgeable”, Trenchev points out that Bitcoin cannot be created on a whim, like cash can be printed. The CEO also mentions that in addition to Bitcoin’s unforgeable nature, the halving ensures that Bitcoin’s inflation is directly reduced. To him, a combination of these factors, especially as they are happening almost simultaneously, will cause Bitcoin to spike.
The CEO also advises that traders should be more focused on Bitcoin’s long-term trajectory and ignore the day-to-day movement. He also responded to the possible disappointment from medium-term investors who might be unhappy that Bitcoin has fallen from levels around $20,000 in 2017, to the $8,600 it was at the time of the interview.
Trenchev dismisses their disappointment by pointing out that Bitcoin has outperformed every other market including gold, the S&P 500, and the dollar index. He then adds:
“Let’s see where it goes from here. I stand by my prediction that I made with you guys earlier in January that Bitcoin is bound to reach $50,000 by the end of the year.”
Back in January, Trenchev told Bloomberg in an interview that Bitcoin will hit $50,000 very easily. Bitcoin has now climbed 2.89% and is trading at $9,037.