Why meme-stock speculators ditching Bitcoin is good for crypto
Meme-stock speculators are falling out of love with Bitcoin – and this is could be good for the crypto market, affirms the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The comments from deVere Group’s Nigel Green, a globally renowned advocate for cryptocurrencies, come as crypto assets were swept up in broad selling of riskier assets last week.
He observed: “As central banks try and normalise monetary policy and ween financial markets off the sweet, sweet lure of free money and unprecedented support, the memers - who rushed in to trade meme-stocks and other risk assets during a period of hype, liquidity and negative real interests - 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, decentralized money, are now disappearing as crypto prices have lowered in tandem with stock markets during a choppy few weeks.
“But even with them fleeing the market (that they have never been in without it being supported by central banks), Bitcoin is still priced considerably above its 2020 and 2021 lows.”
He continued: “Now the memers, the stimulus, and media frenzy are fading, it’s clear to see that the significant gains made by Bitcoin have been earned for real.
“This is evidenced by the ever-increasing global level of institutional and sovereign investment into the world’s largest cryptocurrency.
“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 said: “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.”
Nigel concluded: “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.”
