– Ranked the Number. 1 Top Smartphone Camera by DXOMARK The new HUAWEI P60 Pro is now available in South Africa! With its cutting-edge…
Bitcoin bounces back: Fintech giant predicts ‘massive Q4’
The Bitcoin price recovery is now underway, and we can expect a “significant bounce” in fourth of this year, predicts the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The prediction by deVere Group’s Nigel Green comes as the powerhouse cryptocurrency finally snaps its longest-ever weekly losing streak.
Following a battle to find support over the weekend, Bitcoin ultimately 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.”
Green believes the world will 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.
“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,” he says.
“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.”
Bitcoin as inflation hedge
Another key reason for Bitcoin to have a strong recovery, says Green, is that investors are using it as a hedge against red-hot inflation as they look to protect their purchasing power by moving out of cash and into store of value investments.
Bitcoin is regarded as a credible hedge against inflation because of its scarcity – a limited supply of 21 million means that higher demand will push prices up. Also because of its accessibility – as an asset it has value and is accepted by the market – and its durability, as Bitcoin will continue to attract 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.”
Plus, affirms Green, global financial watchdogs are increasingly looking into establishing a regulatory framework because they are taking crypto more and more seriously as a financial asset and a medium of exchange.
“Regulation, which I believe is inevitable, would give more protection and, therefore more confidence, to both retail and institutional investors.”
He concludes: “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.”
ALSO READ: Blockchain paves the way for social good in Zambia