Will confidence return to bitcoin?

Bitcoin investors and traders have reasons to be cheerful as the cryptocurrency maintains its price near $22,000 for the first time since June, says the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The bullish assessment from Nigel Green of deVere Group, which launched its own cryptoexchange in 2018, comes as the Bitcoin price has settled above the $21,500 resistance zone, started a gradual increase and pushed through above $22,800 level before retreating. 

He says: “It’s been a tricky time in recent months for the cryptocurrency market which, like all risk assets including stocks, have been hit by a wave of gloomy investor sentiment based on global economic slowdown fears, inflation and geopolitical factors, amongst other issues.

“Crypto isn’t out of the woods just yet, with a maybe small and final rinse-out on its way before a considerable price bounce towards the end of the year.”

He continues: “However, much of any potential bad news for the risk assets market, including central banks’ tightening agendas, has now already been priced-in.

“This means that investor sentiment and, therefore, the price should not be rocked.

“People are starting to realise that, clearly, headwinds remain for economies around the world, but that some quality assets, like Bitcoin, are currently cheap.

“Confidence is creeping back into all markets.

“Specifically on Bitcoin, people are appreciating the inherent current and future value of digital, borderless, global currencies, and will start moving now to take advantage of the current lower valuations.”

A high-profile crypto advocate, who has often been proven correct with his predictions, the game-changing deVere CEO recently publicly said that we’ll soon see a bull run that will lead to a “significant bounce” in the fourth quarter of the year for the world’s leading digital currency.

“One good indicator that the bottom is near is that tracking services reveal that ‘insiders’ are on a buying spree.  They’re taking advantage of reasonable valuations to top-up stakes in quality companies in order to create and grow wealth in the longer term,” he noted.

As Bitcoin makes gains, as is expected, the wider crypto market follows suit.  Ethereum has rallied more than 7% to top the $1,450 mark in the last 24 hours.

The global crypto market cap rose more than 3% this week to reclaim the $1 trillion mark.

Nigel Green concludes: “As the sugar-rush of free money fades away, we can see the real value of assets.

“And despite coming down 50% from its hype and heat-fuelled November high, Bitcoin remains the best-performing asset class of the decade.

“We expect a less high-octane, more steady, continued upward trajectory for Bitcoin over the next few months.”