The price of bitcoin (BTC) should see a “significant bounce” during the fourth quarter of this year, as investors move back into riskier assets, according to Nigel Green, the founder and CEO of asset manager deVere Group.

With bitcoin snapping its longest-ever weekly losing streak over the weekend, “price recovery has started… [and] we’ll soon see a bull run that will lead to a significant bounce in the fourth quarter of the year,” Green predicted in a statement.

He shied away from putting a price on his forecast after an earlier prediction targeting BTC at $50,000 by end of March fell apart.

Bitcoin rose above $31,500 on Monday, up more than 6% in 24 hours. During the preceding seven days, the price limped up 1.5% to end a weekly losing streak that had lasted for two and a half months. BTC has tanked almost 40% from $48,000 in late March.

At the time of press, Bitcoin was trading at $31,300, according to CoinGecko. Bitcoin has seen wild swings since hitting a record high of $69,000 on Nov. 10 due to concerns over crypto regulation as well as the global economic outlook. The recent collapse of LUNA added salt to injury.

Nigel Green, the deVere founder, believes the bottom might be in, and that regulation, though loathed, “would give [investors] more protection and more confidence.”

“Bitcoin is currently highly correlated to leading global stock markets, such as Wall Street’s S&P 500, and I’m confident that the recent market downturn is close to the bottom and a rally is imminent,” he said, adding:

“One good indicator that the bottom is near is that tracking services reveal that ‘insiders’ are on a buying spree. They’re taking advantage of reasonable valuations to top-up stakes in quality companies in order to create and grow wealth in the longer term. Bitcoin will benefit from a stock market rally as investors move back into riskier assets.”

Devere Group is an independent financial advisory firm with offices throughout the world. Headquartered in Dubai, UAE, the company has over $10 billion in assets under management.

Green touted bitcoin’s inflation-hedging characteristics as another key reason for the expected “strong recovery”. The top crypto asset has often been considered a safe haven because of its scarcity – a limited supply of 21 million coins, which proponents say “means that higher demand will push prices up.”

“Investors are increasingly seeing bitcoin as an alternative to the dollar. 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,” he said.

Institutional investors will also be a major driver for sustaining the price push, added the CEO.

Green’s comments echo the recent report by American investment bank JPMorgan Chase & Co, which said that BTC was trading at a discount of up to 30%. The bank maintained that bitcoin’s fair value is $38,000, based on its volatility ratio to gold.

The post deVere Group’s Nigel Green Predicts ‘Significant Bounce’ in Bitcoin Price by Q4 appeared first on BeInCrypto.

Bitcoin price in Telegram @btc_price_every_hour

309 +