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, Arab News quoted.
He was speaking as the world’s dominant cryptocurrency hit another all-time high at $69,000.
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 per cent by early next year, Euro area annual inflation is 4.1 per cent in October 2021, up from 3.4 per cent the month before, and the cost of goods leaving Chinese factories surged by another record rate last month, 13.5 per cent. 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.”
Trading
Bitcoin, the leading cryptocurrency in trading internationally, traded lower on Thursday, falling by 4.70 per cent to $64,964 at 5:40pm Riyadh time.
Ether, the second most traded cryptocurrency, traded at $4,725, down by 2.10 per cent, according to data from Coindesk.
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