- Financial advisory and asset management firm Devere Group predicts that there could be a massive bull run before the year ends.
- Finally, the Devere Group CEO thinks that the implementation of crypto regulations would give more protection and confidence to both institutional and retail investors.
In Asia trading Monday, Bitcoin fell to as low as $24,900, an 18-month low and over 63 percent fall from its all-time high price of $69,000. The continuous pullback has been linked to the collapse of the Terra ecosystem which caused most of the assets to break their key support points in response to the mass sell-off triggered in the market.
As investors’ confidence has been low in the past couple of months, things are expected to get worse as the Federal Reserve is expected to trigger a series of interest rate hikes to control the US inflation which hit a 40-year high in May.
Regardless of these factors that can cause a long-lasting pullback, Financial advisory and asset management firm Devere Group predicts that there could be a massive bull run for Bitcoin before the year ends. According to Nigel Green, Devere’s founder and CEO, the bull run could happen in the fourth quarter of the year.
I believe that we’ll soon see a bull run that will lead to a significant bounce in the fourth quarter of the year for the world’s leading digital currency.
His prediction is largely based on the possibility of investors moving back to riskier assets. Since Bitcoin is highly correlated to the leading Global stock markets including Wall Street’s S&P 500, he believes that a rally is imminent.
Institutional investors could trigger the next Bitcoin bull-run
It is important to note that many people including hedge fund manager Paul Tudor Jones and venture capitalist Tim Draper, tip Bitcoin as a perfect hedge against inflation. For this reason, Green stated that the protection against the rising inflation with Bitcoin as a hedge could be a catalyst for the rally.
In addition, Green believes that investors are increasingly seeing Bitcoin as an alternative to fiat currency.
The U.S. government started feverishly adding digital dollars to its economy during the pandemic, diluting its value, but adding to the long-term prospects of Bitcoin.
It can be recalled that Veteran investor Bill Miller, earlier disclosed that people are thinking about having an alternative currency to the US dollar following the sanction imposed on Russia for its invasion of Ukraine. One other factor that could trigger this bull run is the involvement of institutional investors.
A survey result announced in April by Bitstamp, a crypto derivatives trading platform, disclosed a strong interest by institutional investors. About 80 percent of institutional investors believe that crypto would overtake traditional investment. Around 70 percent said they find crypto as a trustworthy investment, and 68 percent said they will recommend it in investment strategies. For this reason, Green believes that the growing involvement of these institutions could add “the capital, expertise, and reputational pull to the industry.”
Finally, the Devere Group CEO thinks that the implementation of crypto regulations would give more protection and confidence to both institutional and retail investors to spearhead the rally.
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