According to the CEO of one of the world’s largest independent financial advisory, asset management, and fintech groups, the Bitcoin price will likely continue its upward trend until at least the second quarter of 2022, owing to ongoing global inflation fears.
Nigel Green, CEO and founder of deVere, made the prediction as the world’s dominant cryptocurrency hit another all-time high of $69,000 on Wednesday.
It came after data revealed that inflation in the United States has risen to a 31-year high, raising the prospect that the Federal Reserve will raise interest rates sooner rather than later.
“Prices paid by US consumers jumped the most since 1990 last month, rising a staggering 6.2 percent from a year earlier,” Mr Green says.
“The latest data from the United States will only add to global concerns about inflation as price pressures heat up around the world.”
“Inflation in the United Kingdom could exceed 5% by early next year, Eurozone annual inflation is 4.1 percent in October 2021, up from 3.4 percent the previous month, and the cost of goods leaving Chinese factories surged by another record rate last month – 13.5 percent – and there are growing signs that consumers are now feeling the pain.”
“It’s a global issue,” he continues, “because businesses have been raising prices as supply chain bottlenecks and a shortage of qualified workers drive up costs.”
“And it’s one that’s likely to last until at least the first quarter of 2022, when pressures should begin to ease.”
“Against this backdrop, and with some peaks and troughs along the way because markets never move in a straight line with traders profiting, we can expect Bitcoin and other major cryptocurrencies to continue their upward trajectory.”
“Bitcoin is widely regarded as a hedge against inflation, owing to its limited supply, which is unaffected by its price.”
According to the deVere CEO, this ‘inflation shield’ will bring to the crypto market growing investment from major institutional investors, bringing capital, expertise, and reputational pull – and further driving up prices.
Earlier this week, as he correctly predicted that Bitcoin would reach new all-time highs, Mr Green stated that other cryptos can also be expected to rise.
“Bitcoin’s gravitational pull on other digital assets will manifest itself once more this week, pulling up other major cryptocurrencies while maintaining its own strength.” “Those cryptos involved in fintech development, such as Ether, Solana, and Cardano, are expected to do particularly well.”
“In this inflationary period, Bitcoin has outperformed gold, which has almost universally been hailed as the ultimate inflation hedge – until now,” he concludes.
The deVere Group
deVere Group is one of the world’s largest independent advisors to international, local mass affluent, and high-net-worth clients. It has over 70 offices around the world, over 80,000 clients, and $12 billion under advisement.