Bitcoin has been on a tear in 2020, skyrocketing over 150% in a jump crypto enthusiasts have credited to unprecedented monetary and fiscal stimulus in response to the Covid-19 crisis, as well as interest from big-name investors such as Paul Tudor Jones and Stanley Druckenmiller. The latest tumble comes as many predicted the cryptocurrency would soon hit an all-time high of $20,000.
Antoni Trenchev, a managing partner and co-founder of Nexo, which bills itself as the world’s biggest crypto lender, said he expects bitcoin to rally well into the $20,000s and beyond. “Long term I don’t see anything derailing Bitcoin’s irrevocable rise higher,” said Trenchev. “That doesn’t mean we won’t have pullbacks along the way. Look what happened in March; Bitcoin plunged 40% in one day during the coronavirus market panic. 20-30% falls can and should be expected.” He added: “Any healthy market needs to have pullbacks and periods of consolidation. Already in 2020 we’ve seen a gain of 160%.”