Bitcoin “whale watching” is prompting the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations to buy the dip, he confirms.
Nigel Green of deVere Group’s bullish comments come as Bitcoin traded below $19,000 on Wednesday, hitting its lowest level since June. It had the effect of helping shrink the value of the entire cryptocurrency market below $1 trillion.
He said, “The continuing strength of the U.S. dollar, which is down to policy tightening by the Federal Reserve, is being felt by Bitcoin and all other risk assets, as we have seen in the recent drop in global stock markets.
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“But like many serious crypto investors, I’m buying the dip. I’m embracing this short-term volatility for longer-term gains.”
The long-term crypto advocate says there are a number of factors currently influencing his decision to buy more Bitcoin.
“One reason is that I’m ‘whale watching.’ Whales are investors who are giant crypto holders, holding enough assets to have the potential to move currency valuations.
“In recent weeks, whales have been selling which has the effect of bringing down the market price as others get spooked and panic-sell. This then allows the big players to buy back more, and cheaper, down the track.
“I sense that they are preparing to make their moves to buy and top-up their holdings in the coming weeks.
“Also, there’s other noticeable whale activity taking place. The number of new wallets holding between 10,000 and 100,000 Bitcoins has jumped by 103 in the last 30 days.”
Besides tracking the whales, Nigel Green says it’s the fundamentals of crypto that have him using the dip in price as a “key buying opportunity.”
“Like many major corporations, financial institutions, governments, prestigious universities, and household-name investing legends, I’m confident that digital currencies are the inevitable future of money.
“In our increasingly tech-driven, globalised world, it makes sense to hold digital, borderless, decentralised currencies.
“In addition, adoption and demand are increasing all the time, whilst at the same time, supply is decreasing.”
The deVere CEO concluded, “Despite the recent turbulence, I believe that the trajectory of Bitcoin and other major cryptos is upwards. This is why I view the current dip as a discount.”