Yes, there are deep losses across the cryptocurrency market. And yes, I’m still buying Bitcoin.
The world’s largest cryptocurrency has lost 70% of its value since reaching a peak of $69,000 a share in November 2021. Overall, cryptocurrency assets have declined from their November peak of $3 trillion to less than $1 trillion today.
The current selloff has been triggered by a wider risk-off sentiment that also impacted many areas of global stock markets.
It’s happening as inflation is running red-hot and, therefore, encouraging central banks to tighten monetary policies, putting at risk the liquidity that has benefitted many asset classes, including Bitcoin.
Despite the crypto crash, like many long-term crypto investors, I’m still accumulating Bitcoin. I’m using the volatility as a buying opportunity; I’m topping up my investment portfolio at a lower price point.
The reason why I’m still buying Bitcoin?
Because I’m confident that digital, global, borderless, decentralized, tamper-proof, unconfiscatable money is, inevitably, the future.
Central banks are now being forced to act agressively with respect to interest rates, in order to combat inflation.
Bitcoin and other digital currencies are widely regarded as a shield against inflation mainly because of their limited supply, which is not influenced by their price.
Like many investors, I’m viewing the current Bitcoin price dips as discounts, which echoes the sentiment of the quote by the investment legend and the world’s fifth richest man, Warren Buffet, who famously said, "Be fearful when others are greedy, and greedy when others are fearful.”
Everyone will have their own opinions, of course, but my take is that Bitcoin may get a tough summer in thinner markets but that it could stage a bull run in the fourth quarter. Time will tell.
I’m still stacking Bitcoin as its unique fundamentals haven’t changed.
London-born Nigel Green is founder and CEO of deVere Group. Following in his father’s footstep, he entered the financial services industry as a young adult. After working in the sector for 15 years in London, he subsequently spent several years operating within the international space, before launching deVere in 2002 with a single office in Hong Kong. Today, deVere is one of the world’s largest independent financial advisory organizations, doing business in 100 countries and with more than $12bn under advisement. It specializes global financial solutions to international, local mass affluent, and high-net-worth clients. In early 2017, it was announced that deVere would launch its own private bank. In addition, deVere also confirmed it has received its own investment banking license.
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