The bitcoin price rally is showing no signs of slowing down. The flagship cryptocurrency shot up to new 2019 highs less than a day after it cracked the $11,000 mark, and there are enough voices out there suggesting that bitcoin has the potential to move higher, even beyond its all-time high of $20,000.
Antoni Trenchev, the co-founder of Nexo, is one such believer. In a recent interview with CNBC, Trenchev pointed out that doubters of cryptocurrencies in general and bitcoin, in particular, are having a hard time finding a reason to continue their propaganda against digital assets.
Trenchev said on the interview that growing institutional interest in bitcoin and other cryptocurrencies is driving drive mass adoption:
I think it is really about institutional support and the implication that it has in terms of mass adoption. We see Facebook coming and developing their stablecoin Libra, we see JPMorgan developing their coin later on this year, we see Fidelity joining the space…
Trenchev’s comment hits the point home that “people are starting to notice the fact that bitcoin is here to stay.” Facebook’s Libra, for instance, is expected to be a catalyst for cryptocurrency and blockchain adoption, and bring more people into the ecosystem.
This is probably why the Nexo founder believes that bitcoin doubters are “having a really hard time” to continue their propaganda against crypto. He cites that the digital asset has been announced close to dead many a time but it has risen time and again.
Given that major tech and finance players are now entering the space, Trenchev has hit the nail right on its head.
Institutional investors are buying more of bitcoin. In fact, crypto hedge funds piled into bitcoin last year despite the bear market, with assets under management rising three times year over year. The situation should get better this year as a survey by asset manager Fidelity has revealed that almost half of the institutional investors are willing to invest in cryptocurrencies.
All of this bodes well for bitcoin, while those calling for death of the digital asset will now have to go back into the holes they crawled out of.
Trenchev added on the interview that 2018 was a difficult year for bitcoin investors. But the tables have turned and the latest rally is more than just hype. He said:
I think that there has been a perfect alignment of a few favorable factors. We see the geopolitical turmoil that’s certainly helped the cause of bitcoin. We’ve seen the bear market of 2018 the harshest proponents turning skeptical at some point, and this usually is the inflection point from which assets start rallying again.
Trenchev is probably referring to bitcoin’s newfound status as a safe-haven asset, just like gold. It seems like investors are flocking toward the cryptocurrency in order to save themselves from the global market volatility that’s been triggered by the U.S.’ trade wars on multiple fronts, as well as political tensions.
All of these catalysts have propelled the price of bitcoin higher this year. But there’s still room for growth as adoption improves, so don’t be surprised to see bitcoin move higher as the rally is just getting started.
Last modified: June 23, 2020 7:37 PM UTC