Bitcoin dipping to a three-month low is seen by investors as a buying opportunity because the cryptocurrency has just reached a landmark moment in becoming adopted as a significant currency, according to a leading financial advisor and head of a fintech.
The digital asset fell Monday to $33,710, the lowest since 24 January. By early afternoon trading, it dipped further to $32,923.
“The Bitcoin price has shed 3.8% over the past 24 hours. As typically happens, we except this dip to be used by ‘whales’ – who are individuals or entities that hold enough cryptocurrency to have the potential to move currency valuations – as major buying opportunities,” said Nigel Green, CEO and founder of the deVere Group.
“This is because the robust fundamentals of the world’s largest cryptocurrency, including being a digital, borderless, viable, decentralised, tamper-proof, unconfiscatable monetary system remain the same,” he explained.
Green said Bitcoin has just reached another milestone in becoming adopted as a major currency.
“Strike, a fintech payment processor for the Bitcoin Lightning Network, is now integrating with BlackHawk Network, the largest payment processor in the world.
“This allows Bitcoin to enter the physical locations of retail outlets and hospitality venues, which make up 85% of all U.S. transactions.”
Green said that this landmark moment will not have gone unnoticed by institutional investors and whales.
“They will be seeking to further increase their exposure to Bitcoin. As typically happens with price dips, they will shrug off concerns about dips, using them as buying opportunities, and focus on long-term trends.”
Bitcoin’s dip earlier on Monday to its lowest level since January reflects slumping stock markets, meaning that it is, currently, being regarded as a risk asset, alongside equities.
The tech heavy Nasdaq fell 1.5% last week, and has lost 22% year to date, hurt by the prospect of persistent inflation forcing the U.S. Federal Reserve to hike rates despite slowing growth. On Monday, morning, Nasdaq futures were down a further 0.8% in Asia trading.
“Institutional investors and well-resourced individuals will be moving to buy what they are currently regarding as ‘discounted’ Bitcoin,” deVere’s Green concluded.