RIYADH: The Bitcoin price is likely to continue rising until at least the second quarter of 2022 amid continuing global inflation fears, predicts the CEO and founder of deVere, Nigel Green.
He was speaking 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 US, raising the prospect the Federal Reserve will raise interest rates sooner rather than later.
“Inflation in the UK could rise above 5 percent by early next year, Euro area annual inflation is 4.1 percent in October 2021, up from 3.4 percent the month before, and the cost of goods leaving Chinese factories surged by another record rate last month – 13.5 percent. There are increasing signals that consumers are now feeling the pain from all of this.” Green said.
“It’s a global issue, as businesses have been raising prices as supply chain bottlenecks and a shortage of qualified workers push up costs.
"It's likely to last until at least the beginning of the second quarter of 2022, when pressures should start to ease," he added
This inflation shield is likely to result in growing investment from major institutional investors, bringing to the crypto market capital, expertise and reputational pull, further driving up prices, he believes.
He concludes: “We can expect those cryptos involved with fintech development, such as Ether, Solana and Cardano, to do particularly well.
“In this inflationary period, Bitcoin has outperformed gold, which has been almost universally hailed as the ultimate inflation hedge until now.”
Bitcoin, the leading cryptocurrency in trading internationally, traded lower on Thursday, falling by 4.70 percent to $64,964 at 5:40 p.m Riyadh time.
Ether, the second most traded cryptocurrency, traded at $4,725, down by 2.10 percent, according to data from Coindesk.