Over the past few years, cryptocurrency has emerged as one of the biggest and best long-term investment opportunities of modern times, with Bitcoin weathering the storm of the global pandemic well in spite of market volatility and ending last year on a high. It might not have climbed quite to the lofty $100,000 predicted by many experts, but it recovered well from several dips – something that instilled confidence in many new and would-be investors to finally take the plunge and buy.
In the first quarter of this year, crypto trading apps like bitcoin-eraapp.com reported a continuation of the surge in new user sign-ups reported throughout 2020 and 2021, and it seems that those who most recently climbed aboard the crypto train may have done so at just the right time.
Earlier this month, Bitcoin dipped to a dramatic three-month low of $33,710, presenting a priceless buying opportunity for investors, with the world’s largest – and leading – cryptocurrency having just reached a landmark moment in becoming adopted as a significant currency.
According to Nigel Green, chief executive and founder of the deVere Group – one of the world’s largest independent financial advisory, asset management and fintech organisations, it’s a great time for new investors, as well as more experienced traders, to purchase the digital asset, as in doing so they could be set to reap some substantial gains later down the line.
He said on Monday: “The Bitcoin price has shed 3.8 per cent over the past 24 hours. As typically happens, we expect this dip to be used by ‘whales’ – individuals or entities that hold enough cryptocurrency to have the potential to move currency valuations – as major buying opportunities.
“This is because the robust fundamentals of the world’s largest cryptocurrency, including being a digital, borderless, viable, decentralised, tamper-proof, non confiscatable monetary system remain the same.
“But, in addition, it has also just reached another milestone in becoming adopted as a major currency.
“Strike, a fintech payment processor for the Bitcoin Lightning Network, is now integrating with BlackHawk Network, the largest payment processor in the world. This allows Bitcoin to enter the physical locations of retail outlets and hospitality venues, which make up 85 per cent of all U.S. transactions.”
There’s no denying that it’s a landmark moment, and one that won’t have gone unnoticed by institutional investors and whales. And according to Green, we can expect some huge trades to be made this month, with big buyers making moves to lay their hands on as much of the currency as they can.
“As such, they will be seeking to further increase their exposure to Bitcoin. As typically happens with price dips, they will shrug off concerns about dips, using them as buying opportunities, and focus on long-term trends.”
For many, it might seem like a risky business – but seasoned crypto traders, who have been analysing the peaks and troughs of the market for some years now, are all too familiar with the trend. Bitcoin, in particular, has always bounced back from volatility, and in 2022, as uptake grows and it becomes considered more of a global solution than it ever has been before, it is becoming ever more valuable.
Bitcoin’s dip to its lowest level since January on Monday has it reflecting slumping stock markets, meaning that it is, currently, being regarded as a risk asset, alongside equities – but we can expect to see it climbing back upwards again in the near future, which is why now is the perfect time for investors to buy.
The tech heavy Nasdaq fell 1.5 per cent last week, and has lost 22 per cent in the year to date, hindered by the prospect of persistent inflation forcing the U.S. Federal Reserve to hike rates despite slowing growth. On Monday morning, Nasdaq futures were down a further 0.8 per cent in Asia trading.
deVere CEO Green says: “Institutional investors and well-resourced individuals will be moving to buy what they are currently regarding as ‘discounted’ Bitcoin.”
And it almost certainly won’t be the only cryptocurrency price plunge to spark a buying frenzy this week, with the likes of Ethereum’s Ether also currently available at a great price.
What lies ahead this year for cryptocurrency remains to be seen, as with the various global factors impacting the world’s economies, we’re facing some uncertain times. But those prepared to play the long game may well find themselves quids in if they can manage to hold their nerve – we’ll just have to wait and see.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.
