New Bitcoin ATH Coming by the End of This Year, Big Downside Move Just a BTD Opportunity: Nexo Founder
Before the weekend could be here, the crypto market got a buy the dip opportunity as the price of Bitcoin went down to about $16,300 while ETH made it to $480. BTC recovered slightly to $17,265
Billions of dollars have been wiped out from the market as a result of this correction, which the market is calling a “bullish dumping.”
The retracement that has been expected is seen as healthy before bitcoin, the largest cryptocurrency, starts ascending again to its all-time high.
Antoni Trenchev, co-founder and managing partner of Nexo in London, which calls itself the world’s biggest crypto lender, is a firm believer that the new ATH would be here before 2020 is over.
Bitcoin “will definitely have new all-time highs by the end of this 2020,” said Trenchev in an interview with Bloomberg.
Even miner unspent supply has been holding strong, growing by more than 10,000 since the March crash, currently holding 1.8 million BTC, waiting for new highs.
On the big move to the downside, which the host said just argues that Bitcoin is not necessarily a very reliable haven, Trenchev explained how “this mentality is the reason why most people don't get to profit off bitcoin in the long run.”
He further goes on to say how when Bitcoin reaches a new all-time high, it becomes “too expensive,” and when the market gives a correction of just 10% “as a buying opportunity,” people declare it dead.
Setting Bigger Targets
While in the short term, BTC will be going above $20k. In the long term, even $100k is a real possibility, according to some like Anthony Pompliano, the co-founder of investment firm Morgan Creek Digital.
“I don't think it's that crazy to see a $100,000 bitcoin price by the end of 2021,” Pompliano said in a recent interview.
“And if we continue to get bigger and bigger buyers … if this kind of tips over and all of the sudden it becomes kind of a consensus trade, it wouldn't surprise me to see something even higher than $100,000.”
Trenchev also shared how in the macro, bitcoin’s digital gold narrative is stronger than ever, and if bitcoin just captures like 10% of the total market cap of gold, we will be at $50,000 at no time.
As we have seen in this bull run, the number of whales, those holding at least 1,000 BTC, continues to accumulate more and more of the digital asset. These entities have actually reached a new all-time high after over four years, as per Glassnode data.
And this is why this rally has been seen as “very different” than the 2017 one when institutional adoption was extremely low. “It's very, very different this time around,” said Trenchev.
“Up to 80% of this rally is due to smart money,” he said, adding both institutional investors and retail are participating in this. But despite being near $20k,
“it's nowhere near what we saw in 2017-2018 where you had everyone and their grandmother maxing out their credit cards on Coinbase just to get their bitcoin.”