Anthony Trenchev Sees Bitcoin as an Inflation Hedge Comparable to Gold

Anthony Trenchev, co-founder of crypto lending platform Nexo, shared his outlook on the world’s leading digital asset. In an interview published yesterday, Trenchev told CNBC that he expects the largest cryptocurrency to double in value by the end of June this year.

“I’m quite optimistic on Bitcoin. I think it will reach $100,000 this year, probably by mid-year,” he said.

Institutional Adoption and Macroeconomic Realities Are Key Drivers

The Bulgarian entrepreneur bases his forecast on two main factors. First, he noted that a growing number of major companies are shifting parts of their balance sheets into Bitcoin, which could drive the asset’s price higher. Indeed, recent corporate activity in the crypto space supports this view: firms have been increasing their crypto allocations.

Trenchev also highlighted broader macroeconomic forces that he believes will strongly influence Bitcoin’s value and the future of cryptocurrencies. With the massive fiat money printing triggered by the COVID-19 pandemic, he does not expect inflation to fall quickly. As a result, he anticipates Bitcoin will act like gold as an inflation hedge and that this status will support a doubling in price.

“We see institutional adoption quietly persisting, companies building treasuries filled with Bitcoin. Moreover, the broader reality of macroeconomies and cheap money, in my view, is here to stay, which is great for crypto since it’s an inflation hedge and gold 2.0.”

On the topic of national-level adoption, the former member of the National Assembly of the Republic of Bulgaria made a prediction similar to that of El Salvador’s president, Nayib Bukele. Trenchev expressed his belief that more countries—especially in Latin America—are likely to adopt Bitcoin as legal tender this year.

Bitcoin Headed Toward $220K, Says Max Keiser

Optimism in the market extends beyond Trenchev. Bitcoin maximalist Max Keiser has a more aggressive price target for the year, saying Bitcoin could reach $220,000 as crypto adoption rises and investors flock to it as an inflation hedge.

Keiser supports his forecast with a theory that links Bitcoin’s price directly to the network’s hashrate. The network’s hashrate fell sharply after China cracked down on mining activity, dropping to around 58.4 exahashes per second at the end of June last year.

At the time, Keiser argued the Chinese ban would cause only a modest correction, and he maintains that Bitcoin’s fundamentals are now “shouting louder.” Notably, on January 2, the network’s hashrate hit a record peak of 203.5 exahashes per second.