Nexo Founder: Bitcoin (BTC) Price Growth Is “Shutting Up” Crypto Asset Doubters
In the past few days the world of cryptocurrency has seen an influx of investment as Bitcoin doubled its market capitalization and price in less than two months. The resurgence of Bitcoin to trade at $11,200 USD across major exchanges is causing a shift in the community as bears, critics and doubters find it harder and harder to dismiss the pioneer cryptocurrency. Well, these are the thoughts of the founder of cryptocurrency lending startup, Nexo, Antoni Trenchev.
During a live TV interview with CNBC, Antoni said these doubters and critics are slowly losing their credibility as the coin continues to post new yearly highs every other day. Furthermore, Antoni believes that Bitcoin is proving doubters wrong by “rising from the ashes” after being declared dead over 300 times (90 times in the past year alone).
Year to Date charts of BTC/USD pair (Source: Coinmarketcap)
Factors Influencing Bitcoin’s Rise To $11,000 USD By Trenchev
The Bitcoin enthusiast explained that the current rise in BTC’s value is most likely being driven by the incoming institutional figures in the industry such as Facebook, JP Morgan and Fidelity. Additionally, he said the current global political-economic tensions (in reference to the US-Iran tensions and the China-US trade wars) are pushing investors to look towards Bitcoin as a safe haven.
Nexo’s founder believes that the steam is running out for doubters and naysayers as more and more companies and governments continue to stock up on the coin.
Institutional Investment Is Pushing Up Bitcoin’s Value
In a survey carried out by Fidelity Digital Assets Exchange earlier this year, nearly half of the institutional investors were willing to add digital assets to their portfolio. Of the number interviewed, 32% sees cryptocurrencies as an alternative asset class while 15% believe crypto is an asset class on its own. Furthermore, the digital assets under management across the industry has grown by over 300% in the past year despite the bear market.
Source: Fidelity Medium
Such numbers show the increased adoption rates of institutional investors in Bitcoin and doubters will need to put up a strong case against Bitcoin’s success now.
The “Digital Gold” Property
In the past bull trends, the Bitcoin rush has been caused by sudden hype across the mainstream media and news outlets that has led to unstable value growth of the coin. Trenchev however believes the bullish trend this time is different given the factors in play such as BTC’s use as a safe haven that have led to the coin’s value doubling.
Adding to institutional investment, the use of BTC as a safe haven asset in this times of political and economic uncertainties is a major agent in the price boost. As a highly uncorrelated market to equities, bond yields and traditional markets, Bitcoin offers investors diversification in their portfolios.
Earlier on Tuesday, Max Keiser, a Bitcoin enthusiast claimed that the current rise in gold’s price is affected by BTC’s success. He further claimed that the Bitcoin community is key to the cryptocurrency’s success over gold saying,
“The #Bitcoin community now has a greater understanding of money and monetary history than the Gold community.”