Asset managers and fintech organisations are still snapping up Bitcoin in the face of a dramatic collapse that has seen the world’s leading cryptocurrency tumble in price by almost 30 per cent in one week.
Nigel Green, chief executive of deVere Group – one of the world’s largest financial advisories – and a Crypto AM columnist, says he too is continuing to buy more Bitcoin, despite deep losses across the cryptocurrency market.
The bullish approach from the financial giant comes as Bitcoin clung on to $21,000 having come within $71 of hitting the psychologically significant barrier of $20,000 yesterday morning.
“The current selloff has been triggered by a wider risk-off sentiment that also impacted many areas of global stock markets,” explained Green.
“It’s happening as inflation is running red-hot and, therefore, encouraging central banks to tighten monetary policies, putting at risk the liquidity that has benefitted many asset classes, including Bitcoin.”
Bitcoin is down more than 60 per cent from its all-time high of $69,000 on November 10 2021.
“Despite the crypto crash, like many long-term crypto investors I’m still accumulating Bitcoin,” added Crypto AM’s Crypto Revolution contributor.
“I’m using the volatility as a buying opportunity; I’m topping up my investment portfolio at a lower price point.”
The high-profile Bitcoin bull’s comments come as central banks – including the US Federal Reserve, which made its key announcement on interest rates yesterday – are now being forced to act in order to combat inflation.
Bitcoin and other digital currencies are widely regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.
Like many investors, Nigel Green says he is viewing the current Bitcoin price dips “as discounts”, echoing the sentiment of the quote by the investment legend and the world’s fifth richest man, Warren Buffet, who famously said to “be fearful when others are greedy, and greedy when others are fearful”.
The deVere boss goes on to add: “Everyone will have their own opinions, of course, but my take is that Bitcoin may get a tough summer in thinner markets but that it could stage a bull run in the fourth quarter. Time will tell.
“I’m still stacking Bitcoin as its unique fundamentals haven’t changed.”