Bitcoin has recently surpassed $17,000 which is the highest price in nearly two years. Bitcoin is hitting mainstream media again as the largest digital asset by market cap attempts to breach all-time highs. Aside from institutional investors, companies like Square and PayPal are spurring Bitcoin interest. Antoni Trenchev, the managing partner at Nexo Finance, believes this rally is just getting started.
At the time of this reporting, Bitcoin is currently trading at $17,777. The largest cryptocurrency by market cap has recently hit the highest levels since January 2018. On a year to date basis, BTC has surged +146% and has thrived in an environment where a global pandemic forced economies to shutdown. Bitcoin has proven this year why it came to fruition. BTC has historically done well in traditional bull markets and is now attesting its dominance during global turmoil.
Antoni Trenchev, the Managing Partner at Nexo Finance, shared feedback with Visionary Financial on Bitcoins outlook. Nexo Finance is one of the leaders when it comes to crypto lending, and has processed over $3 billion for 800K+ users. Antoni stated that:
“The crypto industry is ecstatic to see the price of crypto’s bellwether Bitcoin hit $17K, the highest in nearly two years. Back in March, I predicted that BTC could reach 50K by end-2020 and now there is increasing evidence of that upward trend. A few recent events have undoubtedly had an impact: institutional investment by the likes of MicroStrategy and Square, PayPal actively shilling crypto, and the Bitcoin halving in May, among others. It is also worth pointing out that Bitcoin’s success is not temporary: the one-year HODL wave, which reveals how many investors hold BTC for over a year, is at an all-time high. What makes this story all the more fulfilling is the positive spillover we are witnessing into other areas of the crypto market, such as DeFi.”
Institutional & Corporate Demand
The industry could tell from early on that institutional demand was going to be a theme in 2020. With the global pandemic creating a lot of uncertainty in traditional markets, institutional investors were seeking ways to diversify their holdings. Back in May, it was reported that Grayscale, the largest asset manager in digital currency, saw institutional demand skyrocket in Q1. Hedge Funds accounted for 88% of new money entering the firm, and most inflows were being deployed into Bitcoin and Ethereum.
Huobi exchange has also witnessed a large growth in institutional investors. Leadership at the firm stated that investors have been attracted to the price volatility and high liquidity in digital assets. Wall Street veterans like Paul Tudor Jones have even come out this year stating that Bitcoin is the best hedge against inflation. Since Jones made public statements in May, Bitcoin’s price has nearly doubled.
Companies like MicroStrategy, PayPal, and Square are driving interest in Bitcoin like never before. With these companies catering to millions of users, the headlines are not going unseen. Square recently added $50 million worth of Bitcoin to its balance sheet. The company purchased 4,709 Bitcoins, as Square believes BTC will be a universal currency in the foreseeable future. With a deteriorating dollar in the U.S, investors believe that many other corporate entities will add BTC to their balance sheets. Square’s original investment of $50 million is now worth around $80 million.
MicroStrategy, a business analytics and mobility platform, invested $425 million into Bitcoin in early August. That investment is now worth upwards of $650 million. Michael Saylor, the CEO of MicroStrategy invested in Bitcoin because their cash pile was losing value on a daily basis due to monetary inflation. Saylor is a big proponent of BTC being a better alternative to Gold.
PayPal’s shift into digital assets is some of the biggest news the market has ever seen. PayPal has recently rolled out crypto services that give 200 million U.S users the ability to buy, sell, and hold cryptocurrencies. Also, the payments giant plans to enable crypto payments at 26 million merchants in 2021.
Bitcoins Price Moving Forward – Antoni Trenchev
As Bitcoin inches closer to all-time highs, Antoni Trenchev believes there is more than enough momentum in play to re-test those levels. The Nexo Managing Partner also stated that:
“Although hard to predict, the potential for the price of Bitcoin to keep moving upwards is evident, we could well see it imminently top the $20K mark it reached a few years ago. We firmly believe that digital finance is the key to a new and improved financial system and we take pride in providing solutions that allow people across the world to harness the potential of this up-and-coming industry.”
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