A financial institution with over $10 billion in assets under management is confident that cryptocurrencies will thrive in the long term despite weeks of volatility in the markets.
In a new report, the independent DeVere Group discusses the reasons behind the recent flash crash which sent Bitcoin (BTC) tumbling from $47,000 to below $44,000 in a matter of hours.
DeVere Group CEO Nigel Green says that concern about the US Federal Reserve’s plans to raise interest rates had an immediate negative effect across markets worldwide.
“There’s been a knee-jerk sell-off on Wall Street and the crypto market as it is perceived by some traders that such a move puts at risk the liquidity that has benefited many asset classes, including Bitcoin.”
Green believes the current Bitcoin price shakeout will be of limited duration because the broader inflationary economic factors remain in place.
“I believe that we will see Bitcoin robustly rebound as the dust settles. This will then boost others in the crypto market.
In this latest inflationary period, Bitcoin has outperformed gold which, until now, has always been almost universally hailed as the ultimate inflation hedge.”
Looking longer-term beyond the volatility which has seen Bitcoin fall from a November all-time high above $69,000 down to near the $40,000 resistance level, the investment CEO remains unfazed by such dramatic price movement.
“I’m confident that digital currencies are the inevitable future of money.
In our increasingly tech-driven, globalized world, it makes sense to hold digital, borderless, decentralized currencies.
In addition, adoption and demand are increasing all the time, while at the same time, supply is decreasing.”
Last month, the financial services giant head said he could still see BTC reaching $100,000 in the first half of 2022.
DeVere launched its own cryptocurrency app and wallet in 2018 that allows users to exchange fiat currency for two dozen crypto assets.
At time of writing, Bitcoin is down 3.60% on the day and priced at $41,530.
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Source: https://dailyhodl.com/2022/01/08/devere-group-ceo-brands-crypto-market-correction-a-knee-jerk-sell-off-predicts-bitcoin-will-robustly-rebound/