Bitcoin price still has not found solid ground after the dream that started last year. He spent the month of April around $40,000 and continues to do so. Meanwhile, the long-awaited Ethereum update was thought to be in June. However, Ethereum developers have announced that the big transition may be delayed after June. Despite this delay, Ethereum price continues to hover above $3,000.
Recently, BitMEX founder Arthur Hayes talked about an impending “crypto massacre” and claimed that Bitcoin could drop as low as $30,000. This week, the CEO of crypto lending firm Nexo released a major crypto price prediction, with another crypto analyst describing the market as “at a critical juncture.”
Trenchev: "If the Fed cuts its stimulus program and raises interest rates."
Nexo CEO Antoni Trenchev told CNBC this week that the Bitcoin price could rise above $100,000 in “12 months” and a possible stock market crash would force the Fed to relax monetary policies.
The price prediction made by Trenchev in January 2020 was correct. Trenchev said last year that Bitcoin would hit $50,000 by the end of the year. Indeed, Bitcoin peaked at $69,000 in November last year. “Everybody was laughing at me when I made that prediction,” Trenchev says.
Although Trenchev's forecast this time is bullish in the long-term, he is "concerned" that the Bitcoin price may fall back in the coming months. Trenchev thinks that the crypto market will fall further along with the traditional markets, as the Fed reduces the stimulus program in the Covid period and begins to increase interest rates.
Hasegawa: "Inflation expectations of the market did not decrease"
“Although multiple Fed members continue to voice their support for further tightening of monetary policy this week, the market’s inflation expectations have not fallen and continue to fluctuate sideways at highs,” Yuya Hasegawa, Tokyo-based Bitcoin and cryptocurrency market analyst, told Forbes.
“The push and pull between inflation hedging and tighter monetary policy will continue to force Bitcoin to fluctuate in a range,” Hasegawa said. expressed an opinion.
Bitcoin is currently trading near the support level, which broke through the lows of January, February, and March. A possible negative signal from the Fed or any institution could drop Bitcoin to $36,000.