Earlier this month, Bitcoin prices touched all-time highs around $42,000. On Friday, Jan. 22, the price was just over $31,000.
While the decline may be painful, it doesn’t digital assets should be written off. In fact, some experts argue Bitcoin declines are buying opportunities.
“The Bitcoin price drop will be used as a key buying opportunity by savvy investors, predicts the CEO of one of the world’s largest independent financial advisory and fintech organisations,” according to the deVere Group. “The observation from Nigel Green, the chief executive and founder of deVere Group, which has $12bn under advisement, comes as the price of the cryptocurrency plummeted 11% on Thursday.”
Betting on a Bitcoin Rally
The notorious cryptocurrency has climbed a tremendous amount from last year, with the steep drop underscoring the sharp rise. The volatility is not for long-term for traders and investors, who collectively lost roughly $200 billion.
However, one of the obvious history lessons with Bitcoin is that its slumps, which are often nasty, usually give way to significant upside.
“For many savvy investors, falling prices will be used as a key buying opportunity. They know the long-term trajectory of digital currencies – like stock markets – is upwards,” said Green. ““They will be, sensibly, treating the volatility in cryptocurrency markets as they would in traditional markets. By topping up their portfolios when prices are lower and/or taking advantage of lower entry points, they can often considerably strengthen their position. The crypto market is no different.”
While cryptocurrency may further decline over the near-term, prescient investors will step in to buy.
“Digitalisation of economies and every aspect of our lives, including our financial lives, that shows that there will be an increasing demand for digital, global, borderless money – characteristics that are inherent to the likes of Bitcoin,” adds Green. “Also, due to the consistently surging interest from institutional investors, multinational companies, household name investors and government agencies.”
For more news, information, and strategy, visit the Crypto Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.