Bitcoin price rise to continue into 2022 as inflation fears grow?

The Bitcoin price is likely to continue its skywards trajectory until at least the second quarter of 2022 amid continuing global inflation fears, predicts the boss of one of the world’s largest independent financial advisory, asset management and fintech groups.


The prediction from Nigel Green, CEO and founder of deVere, comes as the world’s dominant cryptocurrency hit another all-time high at $69,000 on Wednesday.


It followed data revealing that inflation has surged to a 31-year high in the U.S., raising the prospect the Federal Reserve will raise interest rates sooner rather than later.


Mr Green says: “Prices paid by U.S. consumers jumped the most since 1990 last month, climbing a staggering 6.2% from a year earlier. 


“This latest data out of the U.S. will only compound global fears about inflation as price pressures run hot around the world.


“Inflation in the UK could rise above 5% by early next year, Euro area annual inflation is 4.1% in October 2021, up from 3.4 % the month before, and the cost of goods leaving Chinese factories surged by another record rate last month – 13.5% – and there are increasing signals that consumers are now feeling the pain.”


He continues: “It’s a global issue as businesses have been raising prices as supply chain bottlenecks and a shortage of qualified workers push up costs.  


“And it’s one that is likely to last until at least the beginning of the second quarter of 2022, when pressures should start to ease.


“Against this backdrop, and amid some peaks and troughs along the way as markets never move in a straight line with traders taking profit, we can expect to see the price of Bitcoin and other major cryptocurrencies continue their skywards trajectory.


“Bitcoin is widely regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.”


This ‘inflation shield’, says the deVere CEO, will bring to the crypto market growing investment from major institutional investors, bringing with them capital, expertise and reputational pull – and further driving up prices.


Earlier this week, as he accurately predicted that Bitcoin would hit fresh all-time highs, Mr Green said that other cryptos can also be expected to move to the upside.


“Bitcoin’s gravitational pull on other digital assets will show itself again this week, pulling up other major cryptocurrencies as it maintains its own strength.


“We can expect those cryptos involved with fintech development, such as Ether, Solana and Cardano, to do particularly well.”


He concludes: “In this inflationary period, Bitcoin has outperformed gold, which has been almost universally hailed as the ultimate inflation hedge – until now.

 

Facebook
Twitter
LinkedIn
Reddit
Email

The deVere Group of Companies, is licensed in various jurisdictions, however, the products and services offered by the respective entities may vary per jurisdiction. The deVere Group does not warrant, either expressly or implied, the accuracy, timeliness, or appropriateness of the information contained on this website. The deVere Group disclaims any responsibility for content errors, omissions, infringing material and any responsibility associated with relying on the information provided on this website. For more country-specific products and services offered by the deVere Group of Companies, you may wish to visit the specific national deVere website, if and where available. The information contained in this website is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved and your country of residence. Before making any decision or taking any action, you should consult a deVere Group Financial Advisor.

© 2010 – 2023 deVere Group. All rights reserved.

© 2010 – 2023 deVere Group. All rights reserved.

Tell Me More

What are you looking for?

Best Investments Now

Webinar Feb 10th - 9.15CET

Join deVereGroup CEO Nigel Green to stay informed about the best ways to grow your wealth As the economic landscape continues to evolve, it has become increasingly important to stay informed about the best ways to grow your wealth