Bitcoin has been trending upwards since the beginning of October, reaching highs since then. The rally doesn’t seem to slow down anytime soon and market analysts don’t believe it will. The current trajectory, as analyzed by experts, mainly shows that the trend will last for the next two months.
Green, however, has an even better outlook for digital assets, which he sees growing along with rising inflation rates. The CEO explained that with inflation rates projected above 5% in the UK and the cost of goods exported by China rising, people will start feeling in their pockets, prompting them to look for better protections against inflation. Bitcoin proved to be the solution.
Bitcoin Bull Run until 2022
On a published post recently on deVere’s website, Nigel Green talks about the future of Bitcoin. Green explained that the rally won’t end in 2021. In fact, the CEO didn’t expect the rally to end anytime soon. Instead, putting the end of the rally in the second quarter of 2022.
As Nigel Green said:
It is likely that last until at least the beginning of the second quarter of 2022, when pressures should begin to ease. Against this backdrop, and amid some ups and downs along the way, as markets never move in a straight line with traders taking profits, we can expect the price of Bitcoin and other major cryptocurrencies to continue their upward trajectories.
The reason behind this predicted growth, has been the growing use of Bitcoin as a protection against inflation. The digital asset quickly outpaced gold, which Green noted “has been almost universally hailed as the ultimate protection against inflation – until now.”
Inflation rates released for the United States in November stood at 6.22%, one of the highest in more than a decade. As the Fed continues to print money without discretion, this rate is expected to rise, making inflation hedges an urgent necessity for investors.
Outlook for smart contract projects
Bitcoin isn’t the only digital asset that the deVere Group founder is optimistic about. He was also particularly upbeat on smart contract projects like Ethereum, Cardano and Solana. He sees this growing along with the rise of Bitcoin, which has historically been known for pulling the Altcoin market with it in its bull run.
Bitcoin’s gravitational pull on other digital assets will show itself again this week, pulling other key cryptocurrencies while maintaining its own strength.
This gravitational pull, as described by Green, will make these other assets do very well in the market, especially given their involvement in the fintech space.
According to Green:
We can expect cryptocurrencies involved in fintech development, such as Ethereum, Solana and Cardano, to perform particularly well.