What is happening in the Bitcoin market?
The pace of Bitcoin price losses has gained momentum as it failed to hold on to the upward momentum it experienced following last week’s flash crash. But the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations says he is embracing the volatility and ‘confidently buying the dip’.
The comments from Nigel Green of deVere Group come following Bitcoin slipping around 6% on Thursday, before regaining some ground on Friday, after it could not hold the important $50,000 price level. Other digital currencies were also down.
Green says: “It’s been a wild few days for Bitcoin and other cryptocurrencies which have been swinging between price gains and losses. Since the 20% flash crash last weekend – which was triggered by a wider risk-off sentiment that also impacted many areas of global stock markets – Bitcoin had been making small gains over the last few days. But it has failed to hold on to this momentum after not being able to hold above $50,000. This is an important threshold and the failure to secure it will likely spook some traders.”
He continues: “However, like many serious crypto investors, I’m embracing this short-term volatility for longer-term gains. I’m using the lower prices of Bitcoin and other major cryptocurrencies to top-up my portfolio. Why? Because like many major corporations, financial institutions, governments, prestigious universities, and household-name investing legends, I’m confident that digital currencies are the inevitable future of money.
“In our increasingly tech-driven, globalised world, it makes sense to hold digital, borderless, decentralised currencies. In addition, adoption and demand are increasing all the time, whilst at the same time, supply is decreasing.”
The deVere boss is seemingly not the only one taking this approach. The third-largest holder of Bitcoin added more than $150 million of the cryptocurrency to their holdings following last weekend’s flash crash.
Figures from BitInfoCharts show the investor purchased more than 3,000 Bitcoins over the last of the last few days.
“Such ‘whales’, which are individuals or entities that hold enough cryptocurrency to have the potential to move currency valuations, shrug off concerns about dips, use them as buying opportunities, and focus on long-term trends. This approach alone has the power to push crypto values up,” affirms Green.
He concludes: “Despite the recent turbulence, the trajectory of Bitcoin and other major cryptos is upwards. I would not be surprised to see Bitcoin reach $100,000 in the first half of 2022.”