Bitcoin’s price rally is already underway, and we can expect a “significant recovery” in the quarter of this year, predicts the CEO and founder of one of the world’s largest independent fintech, wealth management and financial advisory organizations. The prediction from deVere Group’s Nigel Green comes as the crypto powerhouse finally breaks its longest weekly losing streak.
After a struggle for the support over the weekend, Bitcoin finally ended the week at $29,900, which was $450 higher than last Sunday. He says, “Bitcoin investors have reason to be cheerful after the cryptocurrency has snapped the longest weekly downtrend in its history. The price recovery has started, probably much to the chagrin of crypto cynics and Bitcoin bashers.”
“I believe that we’ll soon see a bull run that will lead to a significant bounce in the fourth quarter of the year for the world’s leading digital currency,” he added. Bitcoin is currently highly correlated to leading global stock markets, such as Wall Street’s S&P500, and I’m confident that the recent market downturn is close to the bottom and a rally is imminent.”
“One good indicator that the bottom is near is that tracking services reveal that ‘insiders’ are on a buying spree. They’re taking advantage of reasonable valuations to top-up stakes in quality companies in order to create and grow wealth in the longer term. Bitcoin will benefit from a stock market rally as investors move back into riskier assets,” he added.
According to Nigel Green, another key reason for bitcoin’s strong comeback is that investors are using it as a hedge against red-hot inflation as they seek to protect their purchasing power by going cashless and investing in stores of value. as a credible inflation hedge due to its scarcity: a limited supply of 21 million means higher demand will push prices higher. Also because of its accessibility: as an asset, it has value and is accepted by the market and its longevity, like Bitcoin it will attract more and more demand over time.
“In addition, investors are increasingly seeing Bitcoin as an alternative to the dollar. The U.S. government started feverishly adding digital dollars to its economy during the pandemic, diluting its value, but adding to the long-term prospects of Bitcoin,” notes the CEO. He goes on to add the rally will be “supported by the growing investment from major institutional investors, who bring with them capital, expertise and reputational pull.”
Additionally, says Nigel Green, global financial regulators are increasingly trying to create a regulatory framework as they take cryptocurrencies more seriously as a financial asset and medium of exchange.
“Regulation, which I believe is inevitable, would give more protection and, therefore more confidence, to both retail and institutional investors. After a dip in prices, Bitcoin is back and we can expect it to be flying by the end of the year. But savvy investors, who appreciate the inherent current and future value of digital, borderless, global currencies, will not be waiting until then. They’ll be moving now to take advantage of the current lower valuations,” he concluded.