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Nigel Green: "Cryptocurrency volatility will not scare serious investors"

Friday, 14 October 2022

The Benefits of Cryptocurrency Volatility for Long-Term Investors

As the year progresses, Devere Group CEO Nigel Green predicts a strong level of volatility in the cryptocurrency market. While this may seem like a cause for concern for some investors, Green suggests that those with a long-term investment strategy can actually benefit from this volatility.

Green's forecasts suggest that central banks, including the US Federal Reserve System (FRS) and the Bank of England, will continue to raise interest rates in an attempt to combat rising inflation. Typically, such actions result in a drop in the stock market, which is increasingly correlated with cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). As a result, it may be unwise to rely on the stable exchange rates and the stability of major altcoins until the end of the year.

However, Green emphasized that increased volatility should not be seen as a negative. Instead, savvy long-term investors can take advantage of lower prices caused by panicked traders and diversify their investment portfolios by purchasing crypto assets.

"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.

Green believes that large retail and institutional investors will take the turbulence in stride, much as they would in any other market. He points out that 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 Green.

In March, Green predicted that the BTC rate could surpass $50,000, and his forecast proved to be partially correct - Bitcoin reached $48,000 at the end of the month. Last year, he suggested that within five years, ETH would be able to surpass other cryptocurrencies in terms of market capitalization.

In conclusion, while the volatility of the cryptocurrency market may be unnerving to some investors, it can actually provide an opportunity for those with a long-term investment strategy. By purchasing crypto assets at a lower price during periods of instability, investors can diversify their portfolios and potentially reap significant rewards in the future.