Tuesday, 02 January 2024 12:17 GMT

Bitcoin's Brutal Blow Dares The Market To Blink


(MENAFN- Investor Ideas) Investorideas ( Newswire) a go-to platform for big investing ideas, including bitcoin stocks issues market commentary from deVere Group,

Bitcoin's sharp fall below US$100,000 could already be shaping the next major buying opportunity for those with a medium- to long-term horizon, predicts the CEO of global financial advisory giant deVere Group

Nigel Green says the renewed slide - taking Bitcoin to its weakest level since May - has triggered intense speculation about whether deeper losses are coming, but the underlying dynamics point to something very different.

Bitcoin has now retreated more than 20% from its October peak. The retreat is occurring as selling pressure picks up among long-term holders and risk trades unwind across global markets, amplifying the move.

Liquidity has thinned, leveraged positions have been flushed out and macro uncertainty around rates has tightened financial conditions, which is a combination that typically accelerates short-term swings.

Nigel Green argues that none of these factors alter the strategic case.

He highlights the fixed-supply model, the expanding participation of institutions and sovereign entities, and the embedding of digital-asset infrastructure across global finance.

The recent selling by long-term holders is meaningful, yet the deVere chief executive sees it as part of a typical reset phase after an extended run.

He explains that investors offloading after sitting on large gains is not usually a breakdown signal but a clearing mechanism that has historically preceded stronger, more orderly advances.

He believes many investors will bide their time before stepping back in.

The deVere CEO emphasises that treasury desks, institutional allocators and high-net-worth investors are unlikely to abandon the momentum behind digital assets.

He adds that short-term discomfort should not overshadow the broader trajectory.

pport a bullish medium- to long-term view.”

As global markets remain volatile, Nigel Green believes Bitcoin will stay on investor watchlists as one of the most closely analysed assets.

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