The financial institution with more than $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, independent group DeVere discusses the reasons behind the recent flash crash that plunged Bitcoin (BTC) from $47,000 to below $44,000 in a matter of hours.
Nigel Green, CEO of DeVere Group, says concern about the US Federal Reserve’s plans to raise interest rates has had an immediate negative impact across markets around the world.
“There has been a rapid sell-off on Wall Street and the cryptocurrency market as some traders view such a move as jeopardizing the liquidity that has benefited many asset classes, including bitcoin,.”
Green believes that the current Bitcoin price tremor will be of limited duration as broader inflationary economic factors remain in place.
“I think we will see Bitcoin rebound strongly 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 been almost always hailed globally as the ultimate inflation hedge.”
Looking beyond the long-term volatility that has seen bitcoin drop from its November high above $69,000 to nearly the $40,000 resistance level, the chief investment officer remains unfazed by such a dramatic price movement.
I am confident that digital currencies are the inevitable future of money.
In our increasingly globalized and technology-driven world, it makes sense to maintain borderless and decentralized digital currencies.
In addition, dependence and demand are increasing all the time, while supply is decreasing at the same time.”
Last month, the head of the financial services giant said that he could still see BTC reaching $100,000 in the first half of 2022.
DeVere launched its own cryptocurrency app and wallet in 2018, which allows users to exchange fiat currencies for twenty crypto assets.
At the time of writing, Bitcoin is down 3.60% on the day and is trading at $41,530.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrencies, or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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