Bitcoin, that topped $66,000 on Wednesday, is undeniably a mainstream asset class and most investors should consider including crypto assets as part of a diversified portfolio, said the boss of one of the world’s largest independent financial advisory, asset management and fintech organisations.
“In July, we publicly predicted that Bitcoin would reach and most likely beat it’s previous all-time highs,” said Nigel Green, CEO and founder of deVere Group, which has $12 bln under advisement.
“Whilst there might be some profit-taking in the near-term, so that investors can accumulate more later, the momentum is such that we can expect prices to continue on their upward trajectory.”
The deVere CEO added that this fresh all-time high undeniably cements Bitcoin as a mainstream asset class.
“Most investors should consider including crypto assets as part of a diversified portfolio.
“Why? Because crypto is the inevitable future of money and there is clearly going to be advantages for those investors who have exposure early on – in the same way as those who invested in the major internet, online and tech successes back in the day, such as Amazon, Google and Apple, have secured enormous returns.”
Bitcoin ETF on NYSE
Wednesday’s new record high follows the launch of the ProShares Bitcoin Strategy ETF – the first of its kind – on the New York Stock Exchange on Tuesday at the opening bell.
The deVere CEO said there are there are five factors that will secure the longer-term upward price trajectory.
“First is the U.S. Federal Reserve saying it has no intention of banning cryptocurrencies. It’s highly probable that other cryptos will have more stringent regulatory oversight, yet Bitcoin could be viewed differently by authorities partly due to its gold-like status.”
“Second is the ongoing, mounting interest from institutional investors including Wall Street giants and major payments companies, that bring their capital, expertise and reputational influence to the market.
“Third, is the rising number of crypto advocates and mega influencers like Elon Musk, Jack Dorsey and Cathie Wood who have a clear message: crypto is the inevitable future of money.”
Fourth, the technicals back the prediction.
Looking at Bitcoin halving events, over time we’ve seen that values rise substantially in the year after a halving. After the 2012 and 2016 Bitcoin halvings, prices increased by 55 times and 15 times respectively, explained Green.
“And fifth, cryptocurrencies – Bitcoin in particular – have changed the way the world handles money, does business, makes transactions and manages assets. Investors appreciate the intrinsic value of digital, borderless, global currencies for trade and commerce purposes in increasingly digitalised economies in which businesses operate in more than one jurisdiction.”
He added that “this will only increase as mass adoption increases. Only last month, El Salvador became the first country in the world to adopt Bitcoin as legal tender, and I’m certain many others will follow suit.”
Green concluded that, “today is a major milestone. It underscores crypto’s mainstream appeal and galvanises its place in the world financial system.”