The CEO of financial consultancy giant deVere Group says that volatility in the crypto markets is about to present opportunities to those who are long-term bullish on the asset class.
In a recent blog post, deVere CEO Nigel Green says that continuous interest rate hikes from central banks are almost certain at this point, with further downside to be expected in risk-on assets.
Green says that a market contagion will definitely spread to the crypto markets in the form of downward volatility. The CEO predicts such a scenario will play out before 2022 is over.
“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.”
DeVere highlights how Bitcoin has historically put in much higher gains than top tech names such as Amazon and Apple over the last five years.
Therefore, Green believes savvy long-term investors may be able to take advantage of panic sellers if another capitulation event occurs.
“Bitcoin remains the best-performing asset class in the world, and has consistently ranked amongst the best for both traditional and crypto investment sectors over the last few years.
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.”
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