Bitcoin price is at $47,000 currently due to a greater macro derisking event ahead of today’s expectedly hawkish Federal Reserve meeting.
But while panic-sellers are dumping their coins at potentially a loss, deVere CEO Nigel Green claims that those selling at current prices are “practically giving away” their BTC in what is essentially a Christmas gift to the “wealthy.”
Bitcoin Panic-Sellers Are A Gift To The Wealthy
In an email entitled “Bitcoin panic-sellers are a Christmas gift for wealthy traders,” deVere CEO Nigel Green shared some commentary about the current cryptocurrency selloff. Bitcoin has sank by 38% from local highs, and other cryptocurrencies have taken a worse beating leading up to the Federal Reserve meeting taking place today.
Green agrees, stating that “the recent selloff was triggered by a wider risk-off sentiment that also impacted many areas of global stock markets.”
“It occurred as inflation is running hot and, therefore, encouraging central banks to tighten monetary policies, putting at risk the liquidity that has benefitted a many asset classes, including Bitcoin,” Green added. “Central banks – including The Fed which will make a key announcement on Wednesday – are now being forced to act in order to combat inflation.”
Are Whales Dreaming Of A Green Crypto Christmas?
Regardless of the macro risk, Green believes that the wealthy are using the selloff as an early Christmas gift to themselves at the expense of panic-sellers who are “practically giving away their cryptocurrencies to wealthy buyers who accumulate, accumulate, accumulate.”
“Wealthy crypto investors always buy in the dips. This is because they know that digital, global, borderless, decentralized money is, clearly, the future,” Green continued.
“Wealthy, long-term crypto investors typically benefit from spooked panic-sellers by buying their digital currencies on the cheap to enhance their investment portfolios. Doesn’t a Bitcoin price dip seem especially beneficial to those such investors during these times of worryingly high inflation?”
The answer to that question could soon be answered. Past selloffs combined with extreme fear and severe macro risk have often resulted in some of the largest and most spectacular rallies ever produced. Black Thursday and Bitcoin’s rebound from $3,800 to $65,000 is the ideal example.
But it all comes down to the final hours of the Fed meeting today, and whatever the outcome might be. One of Ned Davis Research’s rules to success in markets, is “Don’t Fight The Fed.”
Read full story on Bitcoinist.com