Nigel Green, the founder and CEO of the international financial consultancy giant deVere Group, says Bitcoin’s recent rise is likely to continue due to global fears about the coronavirus.
In new note written on Monday, Green says BTC’s price parallels the spread of the virus.
“The more cases confirmed, the more countries affected and the bigger the impact on traditional financial markets, the more Bitcoin’s price has increased.”
The number of confirmed coronavirus cases has climbed to 17,491, up from 9,925 since Friday, according to the Johns Hopkins data tracker. Since originating in Wuhan, China, the virus has spread to at least 27 countries, claiming 362 lives, shuttering a spate of international flights, closing borders, disrupting travel, rattling stock markets and impacting China’s economy. On Monday, the Shanghai composite dropped almost 8%, shedding $393 billion.
“As such, it can be reasonably assumed the price of Bitcoin will likely continue to surge until the coronavirus peaks, which could potentially be April or May, according to a research group based in Hong Kong. The principal reason why investors have been recently piling into Bitcoin is because it is increasingly thought of as a safe-haven asset during times of uncertainty.”
The deVere Group reportedly has more than $10 billion under advice from over 80,000 clients in more than 100 countries. Despite his optimism, Green warns BTC will see ups and downs along the way.
New analysis from Bloomberg indicates one of those downturns is on the horizon. According to the GTI strength indicator, which is used to identify the health of an asset’s price by comparing the movement of the daily close, says BTC is now overbought.
Bitcoin began the year at $7,202 and is now up 29.2% year-to-date. At time of publishing, the leading cryptocurrency is trading at $9,308, according to CoinMarketCap.