Despite BTC opening the year with bearish price action, while the Fear & Greed Index shows “extreme fear,” the Bulgarian business mogul set the record straight:
“Every time that investors and the broader community write off Bitcoin, it outperforms significantly. This has been the case in 2020 when it rallied close to 1,000% and in 2021 where it rallied 63%. I’m quite bullish on Bitcoin.”
As one of the world’s largest lending institutions in the digital finance industry, Nexo is privy to insights from serving 2.5 million users across 200 jurisdictions. As a competitor to platforms such as BlockFi and Celsius, it has recently become one of the first crypto lenders to allow customers to borrow stablecoins, Ether (ETH) and other cryptocurrencies using nonfungible tokens as collateral.
Related: Brock Pierce and Tom Lee tip $200K BTC in 2022, despite missing the mark in 2021
While Nexo was forged in the bear market of 2018, Trenchev said that access to “cheap money” and institutions filling their bags with cryptocurrencies will propel Bitcoin over the $100,000 wall.
There’s plenty of evidence that institutional adoption is brewing. Last month, Fidelity Investments partnered with Nexo to offer crypto custodial services, products and lending services for institutional investors. On Monday, Sam Bankman-Fried, founder of FTX — which just listed the NEXO token — said that regulatory clarity would “help a ton on institutional adoption.”
In a nod to further Bitcoin adoption in developing countries, Trenchev concluded by saying “Latin America is the poster child” for cryptocurrency use cases. He joked that “all of them (countries) could be potential candidates for adopting cryptocurrencies as legal tender.”