A financial institution with more than $10 billion in assets under its management, despite weeks of market volatility cryptocurrency stated that he is confident that his units will develop in the long run.
In a new report, the independent DeVere Group discussed the reasons behind the recent flash crash that caused Bitcoin (BTC) to drop from $47,000 to below $44,000 in a matter of hours.
DeVere Group Its CEO, Nigel Green, said that concerns about the US Federal Reserve’s plans to raise interest rates had an immediate negative impact on markets around the world.
“Such a move by some traders Bitcoin (BTC) It was a “knee-jerk sell-off” on Wall Street and the crypto market as it was perceived to risk liquidity that benefits many asset classes, including
Green explained that he expects the current Bitcoin price volatility to exist for a limited amount of time as broader inflationary economic factors remain in place.
“I believe we will see Bitcoin recover strongly very soon. After this recovery, the crypto market will start to appreciate in general.
In this recent inflationary period we are in, Bitcoin has so far outperformed gold, almost universally always known as the ultimate inflation hedge.”
A longer-term view beyond the volatility that has caused Bitcoin to drop near the $40,000 resistance level from its November all-time high of $69,000, the CEO appears to be unaffected by such dramatic price action.
“I am confident that digital currencies are the inevitable future of money. In our increasingly technology-driven, globalizing world, holding digital, borderless, decentralized currencies makes a lot of sense. Also, adoption and demand are constantly increasing, while supply is decreasing.”
The CEO stated last month that he could still see BTC reach $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.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.