Devere Group CEO Nigel Green expects strong cryptocurrency market volatility before the end of the year. However, long-term investors can benefit from this, he said. Nigel Green shared his opinion on the near-term perspective of the cryptocurrency market.
According to his forecasts, central banks, including the US Federal Reserve System (FRS) and the Bank of England, will continue to raise interest rates in a stubborn fight against rising inflation. Given that these actions usually lead to a fall in the stock market, with which Bitcoin (BTC) and Ethereum (ETH) are increasingly correlated, one should not count on their stable exchange rate and the stability of the main altcoins until the end of the year.
However, Green emphasized that the increased volatility of cryptocurrencies should not necessarily be considered a bad thing. According to him, savvy long-term investors can always benefit by buying crypto assets "on the cheap" from panicky traders to diversify their investment portfolios.
Large retail and institutional investors will take it as calmly as the usual "turbulence" in any other market. According to Green, over the past few years, Bitcoin has remained one of the best asset classes.
"Many well-known billionaire investors buy assets in the traditional financial market during a drawdown, and the cryptocurrency market is no different. In fact, price volatility can be a powerful investment strategy,"said Devere Group CEO.
Earlier, Green predicted that at the end of March, the BTC rate could exceed $50,000. In part, his forecast came true - at the end of March, Bitcoin reached $48,000. Last year, a financial consultant suggested that within five years, ETH would be able to come out on top in terms of market capitalization cryptocurrencies.