Crypto backers bolster holdings as price falls

Crypto backers bolster holdings as price falls

Crypto evangelists are predicting that bitcoin’s latest bout of losses will be short-lived and are investing accordingly.

Noting recent price losses for the world’s most popular cryptocurrency, deVere Group chief executive Nigel Green said that the publication of the minutes from the US Federal Reserve’s latest meeting had rattled the market.

“The minutes from the Fed have increased expectations that the central bank of the world’s largest economy will now move faster to raise interest rates to fight soaring inflation,” he said.

Mr Green explained that this move had been perceived by some traders as one that puts at risk the liquidity that has benefited assets like bitcoin.

In the short term, this knee-jerk reaction has had a negative impact on the price of bitcoin.

“However, I believe that we will see bitcoin robustly rebound as the dust settles. This will then boost others in the crypto market,” Mr Green predicted.

According to him, the reason for this is simple. Bitcoin and other cryptocurrencies have become increasingly seen as a shield against rising inflation amid recent highs.

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Source: Crypto backers bolster holdings as price falls | nestegg