Earlier this week, Nigel Green, the CEO of UAE-headquartered deVere Group, which is “one of the world’s largest independent international financial consultancies”, talked about how serious long-term investor are taking advantage of the volatility in the crypto market.
Green said:
“Markets are now predicting that policymakers at major central banks, including the U.S. Federal Reserve and Bank of England, are likely to remain resolute in pumping up interest rates in their battle to beat down unexpectedly stubborn inflation… Five powerful officials of the world’s most influential central bank, the Fed, in comments made on Thursday, maintained a hawkish theme that inflation remains far too high and they won’t be put off raising rates… We expect a 75 basis-point hike when they gather 1-2 November…
“Meanwhile, members of the Bank of England’s Monetary Policy Committee have been delivering pretty clear hints that they will push through a big increase in rates when the MPC next meets on 3 November…
“Given Bitcoin and Ether’s current correlation with stock markets, we anticipate further, perhaps heightened, volatility in the crypto market before the end of 2022… However, for serious investors this will not necessarily be seen as a bad thing… The major investors, including institutional ones, will treat it in the same way as turbulence in any other market…
“Some of the world’s best investors consistently use market volatility as major buying opportunities in traditional financial markets – and the cryptocurrency market is now no different… When used effectively and efficiently, volatility can be an extremely powerful investment strategy… Savvy, long-term crypto investors will be looking to benefit from panic-sellers by buying their digital currencies ‘on the cheap’ to enhance their investment portfolios… Serious investors will not be spooked by further volatility. This isn’t their first rodeo.“
Last month, Green commented on Bitcoin’s price action, and explained why he views the current dip in the price of Bitcoin as a “key buying opportunity”.
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. But like many serious crypto investors, I’m buying the dip. I’m embracing this short-term volatility for longer-term gains…
“One reason is that I’m ‘whale watching’… 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…
“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…
“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.”
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