Bitcoin's $60,000 Floor Looks Impenetrable as Central Banks Fuel Inflation

Nansen CEO Alex Svanevik is sticking by his prediction that Bitcoin will never trade below $60,000 again. In a recent interview, Svanevik stated that he believes the cryptocurrency's price will continue to hold above this threshold due to the increasing pressure of central banks printing money.

The current price of Bitcoin is $86,090.25, which is 43% above the $60,000 floor Svanevik drew. He attributes the strength of the cryptocurrency to the fact that each major Bitcoin bottom has formed above the previous one, indicating a pattern of currency debasement in the price.

Svanevik also pointed out that central banks, treasury departments, and government spending worldwide have created an environment where it is impossible to control the influx of new money into the system. Additionally, Bitcoin's fixed supply of 21 million coins, many of which are already lost, contributes to its strength.

However, Svanevik refused to give a year-end price target for Bitcoin or Ethereum, citing the uncertainty of the geopolitical situation, Treasury bills, and sharply rising interest rates as reasons for his caution.

Despite his confidence in the $60,000 floor, Svanevik did express concern about the potential impact of AI on markets, stating that he had seen an unverified chart suggesting revenue growth at a leading AI company had flattened.