DeVere Group CEO, Nigel Green, has predicted that cryptocurrency investors will add to their holdings in the coming months despite the risk of increased volatility.
With major central banks including the US Federal Reserve and the Bank of England indicating that further rate hikes are in store this year, Mr Green noted that most stock market sectors were set to face further declines as companies borrow less money.
“Given Bitcoin and Ether’s current correlation with stock markets, we anticipate further, perhaps heightened, volatility in the crypto market before the end of 2022,” he said.
“However, for serious investors, this will not necessarily be seen as a bad thing.”
The long-time crypto proponent suggested that top investors would treat this expected volatility in the same way as they treat turbulence in other markets.
“Some of the world’s best investors consistently use market volatility as major buying opportunities in traditional financial markets — and the cryptocurrency market is now no different,” said Mr Green.
“When used effectively and efficiently, volatility can be an extremely powerful investment strategy.”
According to deVere, Bitcoin remains the best-performing asset class in the world and has consistently ranked among the top across both the traditional and crypto investment sectors.
The firm also pointed out that Bitcoin has outperformed major tech stocks by a significant margin over the past five years, including Amazon (355 per cent), Google (322 per cent), Microsoft (183 per cent) and Apple (166 per cent).
“Savvy, long-term crypto investors will be looking to benefit from panic-sellers by buying their digital currencies ‘on the cheap’ to enhance their investment portfolios,” Mr Green added.
“Serious investors will not be spooked by further volatility. This isn’t their first rodeo.”
Last month, the crypto market finally witnessed the ‘historic’ Etherum merge which has now lowered transaction costs and slashed Ethereum's energy consumption by 99.95 per cent.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.