Bitcoin to hit $75k?: Panic sellers are feeding Bitcoin whales

By George Prior

Bitcoin will recover from the current crypto crash to hit a fresh all-time high of $75,000 by the end of 2022, predicts the CEO and founder of one of the world’s largest independent financial advisory organisations.

The bullish prediction by deVere Group’s Nigel Green comes as the world’s largest digital currency by market capitalisation fell below the $40,000 level several times on Monday, weighing down the wider cryptocurrency sector.

The total cryptocurrency market is currently $1.89 trillion, down 11% compared to the week before.

He explains: “Bitcoin briefly dipped below $40,000, tracking losses in global equities.  The correlation with stock markets is currently especially pronounced with the tech-heavy Nasdaq 100 index, which is in tandem more than ever.

“It seems investors are reducing their exposure to risk-on assets, including stocks and crypto, due to heightening concerns about inflation and slower economic growth.

“There’s a growing sense that central banks – including the U.S. Federal Reserve, the Bank of England and European Central Bank – will be unable to achieve a ‘soft landing,’ that’s to say curbing inflation without precipitating a recession.”

He continues: “At the moment, Bitcoin is being regarded as a risk asset, alongside equities.  But this might all change again as its primary characteristics remain the same.

“As inflation continues to run hot in the coming months, the price of Bitcoin will be supported as investors 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 for three key reasons. First, its scarcity – a limited supply of 21 million means that higher demand will push prices up. Second, its accessibility – as an asset it has value and is accepted by the market. And third, its durability – Bitcoin will continue to attract more demand over time.”

The crypto’s other inherent values of being a viable decentralised, tamper-proof, unconfiscatable monetary system have also “been laid bare in recent weeks” due to geopolitical issues, says the deVere CEO.

For these reasons, Nigel Green remains ultra-bullish on Bitcoin.

“If anything, the case for Bitcoin and cryptocurrencies is becoming stronger. Therefore, we expect Bitcoin will recover from the current crypto crash to hit a fresh all-time high of $75,000 by the end of 2022,” he says.

Therefore, he notes, ‘whales’, who are individuals or entities that hold enough cryptocurrency to have the potential to move currency valuations, will be shrugging off concerns about dips, using them as buying opportunities, and focus on long-term trends.

Nigel Green concludes: “Panic-sellers are feeding the whales who are viewing the current Bitcoin price dips as discounts.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.