Meme-stock speculators ditching Bitcoin is good for crypto

1 min read

Meme-stock speculators are falling out of love with Bitcoin – and this could be good for the cryptocurrency market, as crypto assets were swept up in broad selling of riskier assets last week, said the CEO of a leading financial advisory and fintech.

Crypto advocate Nigel Green, CEO and founder of the deVere Group, explained that as central banks try to normalise monetary policy and ween financial markets off the sweet lure of free money and unprecedented support, the memers have fallen out of love with Bitcoin and other serious cryptocurrencies.

“This army of get-rich-quick speculators who were all about price frenzies, rather than the actual inherent value of digital, borderless, decentralised money, are disappearing as crypto prices have lowered in tandem with stock markets during a choppy few weeks,” he said.

“But even with them fleeing the market, Bitcoin is still priced considerably above its 2020 and 2021 lows.”

Green added that the memers – who rushed in to trade meme-stocks and other risk assets during a period of hype, liquidity and negative real interests – as well as the stimulus, and media frenzy are fading.

Significant gains made by Bitcoin have been earned for real, evidenced by the ever-increasing level of institutional and sovereign investment into the world’s largest cryptocurrency.

Capital and clout

“For these investors, who bring with them enormous capital and clout, the robust fundamentals of it being a digital, global, viable, decentralised, tamper-proof, unconfiscatable monetary system remain – and, in fact, are becoming more valuable as time goes on.”

At the height of the 2021 meme-stock frenzy, the deVere CEO had cautioned that, “if you do want the thrill or novelty of chasing big gains, you really should ensure that you have a sound, diversified, long-term plan beforehand. There’s a major difference between investing and gambling.”

Green said that at present, financial markets are going through a period of readjustment as monetary policies are normalised.

“But as the sugar-rush of free money eases, we can see the real value of assets.

“And despite coming down 50% from its November high, which was in part driven by memers, Bitcoin remains the best-performing asset class of the decade.

“Without heat and hype affecting prices, we can expect further significant waves of institutional investment into crypto.”