The cryptocurrency market and its leading market players are fighting to break out of a narrow consolidation zone. However, given the current state of the market, investors are left awaiting the impending market rally. The crypto winter stuck with the market longer than expected and with the FTX collapse, things got worse.
Amid all the hush-hush, one CEO is still confident that the bear market will end in the next few months. CEO of financial advisory firm deVere Group Nigel Green backed his support by bringing in factors like inflation and monetary policies.
Is Bitcoin more alluring right now?
Green predicted that as soon as inflation starts to slow down and central banks start to loosen monetary policy, the price of Bitcoin (BTC) and other digital assets will start to increase.
“Assets that most benefitted from low-interest rates were, naturally, hit hardest in 2022 by the hikes. These include stocks, especially in the tech sector, and cryptocurrencies, among other risk assets.
Green claimed that the present price of Bitcoin is attractive to long-term investors and that kind of confidence is coming back into the markets. He also added that the currently reduced prices will be used by many determined, long-term investors as a purchasing opportunity.
“One good thing about the hikes has been that as the sugar rush of free money faded away, we could see the real value of assets. Despite coming down 70% from its hype and heat-fuelled November 2021 high, Bitcoin remains the best-performing asset class of the decade.”
Following the recent release of FOMC minutes that were more dovish than anticipated and which also revealed that the Fed may reduce its interest rate hikes in the near future, Bitcoin has been flashing green for the previous few days. Market analysts said that the most recent price movement offered a once-in-a-generation opportunity to buy with only two years until the next halving when the king cryptocurrency will become more scarce.
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