Latest News

Bitcoin is behaving as a risk asset at the moment – will this change?

February 24, 2022 (Investorideas.com Newswire) The Bitcoin price has dropped on the Russian invasion of Ukraine because it’s being treated as a risk asset – but this is likely to be temporary, says the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The observation from Nigel Green, chief executive and founder of deVere Group, comes as Bitcoin, the world’s largest cryptocurrency, has already shed 12% in under 24 hours as military aggression in Ukraine ramped up.

He comments: “Bitcoin is often referred to as ‘digital gold’ because it has been regarded as a safe haven in times of upheaval – one that is uncorrelated with other financial markets.

“However, in the last day or so its price has taken a hit, in tandem with the stock market which also drops during more volatile periods. As such, Bitcoin is, currently, being regarded as a risk asset, alongside equities.

“Indeed, the correlation between crypto and stock markets has been pretty solid over the last few months on both inflation news and geopolitical issues.”

The deVere CEO continues: “But this might all change again. The ‘digital gold’ fundamentals for Bitcoin remain unaltered – namely its limited supply.

“Moreover, I think we might see it revert to being regarded as a safe haven asset as the situation in Ukraine develops because it is unconfiscatable – which could become extremely important as centralised authorities take drastic steps.”

The central bank in the Donetsk republic in eastern Ukraine has put a limit on withdrawals at a maximum of 10,000 roubles or $129 per day from ATMs, according to the TASS news agency.

Meanwhile, Russians’ savings could be confiscated in response to sanctions against the country, according to Nikolai Arefiev, a member of the country’s Communist Party and vice-chairman of the Duma’s committee on economic policy.

“In this worrying environment, there’s a real case for a viable decentralised, tamper-proof, unconfiscatable monetary system.”

He goes on to say: “I don’t think that the run of Bitcoin price drops are yet over.

“Therefore, the next few weeks are going to present serious buying opportunities for many investors who seek to take advantage of the lower prices for what is widely regarded as the future of money.”

Nigel Green concludes: “Crypto is an exciting new asset class and, as such, how it’s treated by investors will, naturally, continue to shift.

“Yet, one thing will remain fixed: the appeal of borderless, digital currencies in our increasingly tech-driven world.”

e: george@priorconsultancy.co.uk
t: +44 207 1220 925
Twitter: @PriorConsults

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

More Info:

This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

Buy a crypto guest post on Investorideas.com

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *