Bitcoin hits $21k: the ‘bulls are ready to run!’
The Bitcoin price rally demonstrates that cryptocurrency investors are pricing in more favourable market conditions in 2023 as inflation looks set to peak, affirms the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations.
Nigel Green of deVere Group, a high-profile crypto entrepreneur, is commenting after Bitcoin reached above $21,095 on January 13 for the first time since November 8 2022, before falling back slightly.
At the time of this release, the largest crypto by market capitalisation is $20,890, according to the exchange deVere Crypto.
He says: “We are technically still in a bear market, but the signs are the bulls are beginning to take back control.
“Bitcoin price has jumped yet again– another 3.8% in the last 24 hours – on top of gains made through the week. It’s estimated that around $70 billion has been traded in crypto over the last day alone.”
He continues: “The relief rally began on the back of the latest U.S. inflation data which was released on Thursday. It revealed U.S. CPI slowed to 6.5% in December from 7.1% the previous month.
“As inflation in the world’s largest economy is, it seems, being brought under control thanks to the Federal Reserve’s aggressive interest rate hikes, it makes it more likely that the central bank will begin to take its foot off the brake of the economy by slowing the hikes.
“The Fed will continue hiking rates for a while yet (albeit at a slower pace) as they can’t afford to slide backwards. Officials will continue to sound hawkish too in order to avoid over-excitement in the markets and wider complacency.”
The asset classes that have fallen hardest due to central banks’ policy tightening in 2022 may be the strongest performers during the unwinding of the rate hike programmes, predicts the deVere CEO.
“These include cryptocurrencies, such as Bitcoin, which alongside tech stocks, were hit hard.
“As the central banks begin to stop tightening the screws, and the cyclical upturn gets underway, these asset classes could outperform others.
“Knowing they are likely to be rewarded for doing so, many crypto investors are positioning themselves now for the pivot.”
The developments will be welcomed by crypto enthusiasts after Bitcoin lost over 60% of its value in 2022, with many other tokens experiencing similar losses, due to the bleak macro outlook, the collapse of several crypto firms, and greater regulatory scrutiny.
Nigel Green concludes: The ‘crypto winter’ is thawing amid growing signs that inflation is beginning to cool.
“Of course, the crypto market will not go in a straight line – no market ever does – but we expect the bears to go into hibernation and bulls are ready to run.”
Bitcoin Bulls Photo by Traxer on Unsplash
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