Bitcoin could be on the verge of its next bull run, suggests Nigel Green, founder and chief executive of deVere Group.
This comes as the Bitcoin price on Wednesday broke through the $8,000 barrier against the U.S. Dollar after a period of low volatility.
Mr Green observes: “Ditching its trademark volatility, Bitcoin has been stuck in no-man’s land for over a week oscillating within a $600 range. But the price of the world’s largest cryptocurrency surged to the upside on Wednesday and cleared the key $8,000 resistance level.”
The deVere Group CEO suggests the current pattern could indicate that Bitcoin is on the verge of its next bull run as historically, periods of low volatility come directly before extended crypto bull runs.
For instance, Bitcoin went through a relatively stable period in February this year, then the price ran towards $4,200 in March and to $9,090 before the end of May.”
“Should Bitcoin experience a new run,” says Green, “we can expect it to deliver a boost to the wider crypto market, with other leading cryptocurrencies such as Ethereum, XRP and Litecoin, rallying too. Volatility is typically welcomed by traders and investors as it can present important buying opportunities and bring positive rewards.”
However, he suggests that the volatility we have seen from Bitcoin over the last 2 years is likely to lessen as the cryptocurrency market matures.
“Although volatility will return again, as it does in all financial markets, I think we’re experiencing a fundamental shift and, overall, the crypto market will have less turbulent bouts in the future. This is essential for the cryptocurrency sector long-term as it will further encourage mass adoption and institutional investment.”
The deVere CEO, a high-profile advocate of cryptocurrencies having launched the deVere Crypto app in 2018, concludes: “Of course, no-one knows for sure when the next crypto run will happen, but current relative low volatility suggests it is imminent. What we do know for sure, however, is that cryptocurrencies are the future of money.”