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How Will Bitcoin Prices React to Central Banks’ Reviews?

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Bitcoin and other major cryptocurrencies are likely to jump this week on central banks’ interest rates announcements, predicts the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The prediction from Nigel Green, the game-changing CEO and founder of deVere Group, which launched the deVere Crypto app four years ago, comes as the U.S. Federal Reserve, the Bank of England, the Central Bank of Norway, and the Reserve Bank of Australia, are all reviewing interest rate policy this week.

Mr Green says: “Market watchers will be all eyes on central banks as they look for further hints on asset-buying tapering as global inflation ramps up.

“The Fed is expected to announce a taper, the Bank of England an interest rate rise, Norway likely to hint about its second-rate hike of the year, and the Reserve Bank of Australia could shift its guidance after last week letting its 3-year bond yield surge through the targeted 0.1%.”

He continues: “There’s a growing consensus that we’re going to get tightening a lot quicker than markets had previously anticipated.

“This climate will boost Bitcoin and other cryptocurrencies as with their provable limited supply cap, they are an intrinsically deflationary asset class.

“The mounting concerns over inflation causing Bitcoin to appear more attractive as a hedge, also comes at the time as inflows from institutional investors continue to increase – bringing with them capital and expertise – and as providers continue to meet ongoing demand with new Bitcoin-related investment products.”

Mr Green adds: “In addition, the U.S. Federal Reserve saying it has no intention of banning cryptocurrencies is not going unnoticed by both retail and institutional investors.

“That said, it’s highly probable that other cryptocurrencies will have more stringent regulatory oversight, yet Bitcoin could be viewed differently by authorities partly due to its gold-like status.”

In July, the deVere boss successfully predicted that Bitcoin would hit fresh all-time highs this year, which came to pass last month.  He has also said that should the current conditions be maintained, additional new highs could be reached before the end of 2021.

He concludes: “Crypto investors will be eyeing the central banks this week amid a flurry of interest rate reviews. Prices can be expected to be positively impacted as Bitcoin and others are increasingly regarded as a hedge against inflationary pressures.”

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Fintech CEO: Bukele Doubles Down on Dubious Bitcoin Dip Highlights Culture of Innovation

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As Bitcoin dipped, losing $10,000 over a 24-hour period, El Salvadoran President Bukele bought the dip. Publicly. On Twitter. Despite receiving pushback from folks like economist Peter Schiff. His announcement noted simply, “El Salvador just bought the dip! 150 coins at an average USD price of ~$48,670 #Bitcoin”

“What’s interesting about President Bukele is that he’s staked the entirety of his political future on his Bitcoin gambit. But, this dip doesn’t seem to be based on anything more than an overall fear of the new variant of the coronavirus. With that being the case, if you’ve already bet big on Bitcoin, it makes a lot of sense to double down when such an opportunity arises. History will decide how we view President Bukele, but it seems to be clear that he’s interested in building a culture of innovation around blockchain technologies, digital assets, and Bitcoin,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

“Culture is important in tech. There are a lot of ways to build that culture. One of them is through the press. But, most look beyond the headlines. What is the commitment in terms of regulatory or ancillary dedication to making their tech industry flourish? In this case, buying the dip carries political risk, and Bukele moved forward regardless. It is in line with his launch of a Bitcoin mining operation using geothermal power. The culmination of these efforts is probably why crypto investors from Europe made the trip out to El Salvador to learn more about what’s happening there,” said Gardner.

“We’re already in the green from our last purchase, in less than 24 hours. You know boomer, we have 44,106 oz of gold in our reserves. Worth $79 million, down 0.37% from a year ago. If we had sold it a year ago and bought #Bitcoin, it would now be valued at $204 million,” Bukele wrote on Twitter in response to a tweet from Peter Schiff, which labeled the recent purchase a “waste.”

“It is clear that digital assets are here to stay. Central banks around the world are racing to develop, beta test, and release their own digital currencies. El Salvador and Bukele are taking a different tack than many countries. It is certainly more aggressive than most. However, most of us in the industry expect that digital assets will truly transform the way we interact with the financial system. Even institutional investors, as well as former naysayers like Kevin O’Leary, are banking on cryptocurrency as part of their investment mélange. Building a tech culture, however necessary, may well pay dividends to Bukele’s country down the road, particularly in terms of international investment,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“Right now, one of the biggest concerns to manage in order to ensure a positive crypto future resides in the custody space. When there are providers with significant security flaws being given multi-billion dollar valuations, that’s problematic. I believe the custody situation will right itself in time. Eventually, a fintech firm with a history of innovation and security will emerge, giving investors and exchanges another option to safeguard their assets. That’s one of the final pieces necessary for cryptocurrencies to realize their true and full potential,” said Gardner.

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Bitcoin is a Better Inflation Hedge Than Gold: deVere CEO

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The Bitcoin rally stalled on heightening global worries about inflation, but, says the CEO of one of the world’s leading financial advisory, asset management and fintech firms, it remains “a better shield than gold.”

The largest cryptocurrency by market capitalization ended three consecutive days of healthy gains, before stabilizing, after U.S. Federal Reserve Chair Jerome Powell said on Tuesday it may be time to stop using the term “transitory” as a way of describing the current wave of inflation.

Meanwhile, inflation in Europe has ballooned to the highest on record.

Mr Green says: “Bitcoin is perceived by many investors as a hedge against inflation due largely to its strict supply controls.

“As such, it would be assumed that its price would automatically rise when the U.S. central bank suggests that it would consider speeding up the reduction of its asset purchase policies that have boosted the stock markets.

“But for other investors, including some major institutional investors who have piled into Bitcoin in recent months, the cryptocurrency is still perceived as a risky asset.

“So when they sell-off riskier assets, despite the longer-term outlook and based on short-term hawkish policies from the world’s de facto central bank, Bitcoin, like equities, also becomes vulnerable.”

A long-term, high-profile crypto advocate, Mr Green remains confident that “Bitcoin is today a greater inflation shield than gold”, which has long been the standard go-to inflation hedge.

He says: “Gold has always been regarded as the ultimate inflation hedge – but the world is a much different place now. Our lives and the global economy is increasingly run on tech and digital solutions and this megatrend is only set to become more dominant.

“Gold is likely to be dethroned within a generation as millennials and younger investors, who are so-called ‘digital natives’, are going to be more comfortable with Bitcoin as a hedge than a physical metal.”

The deVere CEO goes on to say: “Bitcoin is often referred to as ‘digital gold’ because like the precious metal it is a medium of exchange, a unit of account, non-sovereign, decentralized, scarce, and a store of value.

“Yet, the cryptocurrency, Bitcoin is superior to gold as a medium of exchange or form of payment.

“Unlike gold, it is a fixed unit of account and easily divisible and transportable. Gold is not easily immediately divisible, and there are potential issues with purity and verification. Whereas Bitcoin is easily traced on blockchain technology and this is going to be a considerable advantage, especially in cross-border transactions.”

Mr Green concludes: “Gold and Bitcoin can, and perhaps should, complement each other in a portfolio.

“But as the world continues to pick up momentum in its shift towards tech, and as millennials become a more dominant part of the world economy, we should expect Bitcoin to also take an increasingly influential role in financial markets, including in regards to being an inflation hedge.”

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MicroStrategy Adds 7,002 Bitcoin to Portfolio

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Yet again MicroStrategy, an Amereican business intelligence company has purchased an additional 7,002 Bitcoin worth $414.4 million to its digital asset portfolio, summing its total bitcoin asset to $3.57 billion.

The CEO of MicroStrategy, Michael Saylor made the purchase announcement on Monday via a Twitter post.

He tweeted, “MicroStrategy has purchased an additional 7,002 bitcoins for ~$414.4 million in cash at an average price of ~$59,187 per #bitcoin. As of 11/29/21 we #hodl ~121,044 bitcoins acquired for ~$3.57 billion at an average price of ~$29,534 per bitcoin”.

MicroStrategy currently owns 121,044 BTC valued at $3.57 billion that were acquired at an average price of $29,534 per bitcoin.

At the time of writing, data from Kucoin shows that Bitcoin is trading at $56,490 per coin. This implies that Microstrategy’s total bitcoin asset is worth over $6.8 billion.

On Friday, Saylor tweeted, “Bitcoin offers better inflation protection than gold and is growing faster than big tech.” 

Saylor believed that Bitcoin (BTC) “is the only property you can truly own, as well as the first technology capable of granting property rights to everyone on earth and In time, we will come to understand that it is concentrated energy in digital form and critical to the progression of our civilization.”

Despite some countries showing little to no adoption to digital assets, Saylor believed that Bitcoin has a potential to become a $100 trillion asset class. He said “digital gold is going to replace gold this decade.”

The MicroStrategy CEO further said the company is not troubled with the ongoing discussion on crypto regulation, noting that it will affect security tokens, decentralized finance (defi) exchanges, crypto exchanges, and other use cases of cryptocurrency that are not bitcoin. In his opinion, “bitcoin is unstoppable as digital property.”

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