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Fed Inflation Warning Will Support Bitcoin Prices: deVere CEO

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Scorching-hot inflation will continue to support Bitcoin prices in the coming months as investors await a crucial statement by the U.S. Federal Reserve on Wednesday, affirms the CEO of one of the world’s largest independent financial advisory organisations.

The comments from Nigel Green of deVere Group, a game-changing financial giant, come amid a flurry of tweets from Elon Musk, the co-founder and CEO of Tesla and the richest person in the world, over the weekend regarding cryptocurrencies.

“As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high,” Musk said via Twitter as part of a conversation with Bitcoin bull Michael Saylor. “I still own and won’t sell my Bitcoin, Ethereum or Doge.”

Nigel Green observes: “The Federal Reserve’s plans for the first interest rate hike since before the pandemic has been well signalled in advance of the official announcement on Wednesday, and it has been priced-in by the markets.

“However, investors will be closely monitoring the U.S. central bank’s statement and analysis for guidance on how it stands on the war in Ukraine and how this could impact the trajectory for other interest rate hikes this year.

“I believe that Fed Chair Jerome Powell will probably concede that growth could be negatively impacted, and already scorching-hot inflation will remain a cause for concern.”

Russia’s attack on Ukraine, and the subsequent sanctions, have triggered a rally in commodities that has further fuelled inflation. Last month’s U.S. consumer price index was up 7.9%, and some experts are now predicting rising petrol prices could send it above 9% this month.

“As inflation continues to run hot in the coming months, the price of Bitcoin will continue to be supported as investors look to protect their purchasing power by moving out of cash and into store of value investments,” says the deVere CEO.

“Bitcoin is regarded as a credible hedge against inflation for three key reasons. First, its scarcity – a limited supply of 21 million means that higher demand will push prices up. Second, its accessibility – as an asset it has value and is accepted by the market. And third, its durability – Bitcoin will continue to attract more demand over time.”

Nigel Green concludes: “The Fed – the world’s most influential central bank – is likely on Wednesday to warn of the continuation of surging prices due in part to Putin’s war in Ukraine.

“This will be bullish for Bitcoin as it will intensify the flight from cash and other assets from investors looking for a reliable inflation shield.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Bitcoin Hits $63,968 in Wild Crypto Market Rally Fueled by ETF Demand

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Bitcoin surged to $63,968 as demand from US exchange-traded funds (ETFs) ignited a fervor among investors and traders alike to propel Bitcoin to its highest level since November 2021.

The heart of this meteoric rise lies in the fundamental economic principle of supply and demand.

With the introduction of new US ETFs dedicated to Bitcoin, the appetite for the digital asset has skyrocketed, outpacing the willingness of long-time holders to part ways with their holdings.

This dynamic imbalance has triggered a cascade of buying pressure, sending shockwaves across the crypto market.

This latest rally adds to Bitcoin’s already impressive performance, with the digital currency having surged over 40% since the advent of the US ETFs earlier in the year.

The influx of approximately $7 billion in net inflows into these funds, spearheaded by industry giants like BlackRock Inc. and Fidelity Investments, signals a seismic shift in mainstream acceptance of cryptocurrencies as legitimate investment vehicles.

Moreover, anticipation surrounding Bitcoin’s upcoming halving event, which will reduce its supply growth, has further fueled optimism among investors.

While debates persist regarding the event’s true impact on price dynamics, industry experts remain bullish on Bitcoin’s trajectory.

As Bitcoin eclipses previous highs and charts a course towards uncharted territory, observers caution against the inherent volatility and potential for sharp corrections.

Nevertheless, the allure of Bitcoin as a lucrative investment avenue continues to captivate the imagination of investors worldwide, ushering in a new era of financial innovation and speculation in the digital age.

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Bitcoin Hits $57,000, Driven by Institutional Investments and ETF Surge

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Bitcoin surged past the $57,000 price level to reach levels last seen in late 2021.

This rally has been largely fueled by increased institutional investments and a surge in demand for Bitcoin exchange-traded funds (ETFs).

Bitcoin’s price skyrocketed by as much as 4.4% to peak at $57,039 before slightly retreating to $56,085 on Tuesday as of 6 a.m. Nigerian time.

This surge represents a 32% increase since the beginning of the year, extending a prolonged rally that has also buoyed other cryptocurrencies like Ether and Dogecoin.

A significant catalyst behind this surge has been the influx of approximately $6.1 billion into a series of Bitcoin ETFs that commenced trading in the United States on January 11.

These ETFs have signaled a broadening demand for Bitcoin beyond the traditional circle of digital asset enthusiasts.

MicroStrategy Inc., a prominent enterprise software firm known for its bullish stance on Bitcoin, announced that it had acquired an additional 3,000 Bitcoins this month, bringing its total Bitcoin holdings to around $10 billion.

This move underscores the growing trend of corporations adopting Bitcoin as part of their treasury reserve strategies.

The overall value of digital assets now stands at approximately $2.2 trillion, as per CoinGecko data, a significant recovery from the lows experienced during the bear market of 2022.

Despite concerns over rising US Treasury yields, Bitcoin’s bullish momentum remains robust, buoyed by favorable sentiment and increasing institutional adoption.

The surge in Bitcoin’s price has also propelled shares of crypto-related companies in the US, including MicroStrategy, Coinbase Global Inc., and Marathon Digital Holdings Inc., which all saw notable gains on Monday.

This positive sentiment has also spilled over into Asian stocks related to digital assets, indicating a broader global appetite for cryptocurrencies amidst a shifting financial landscape.

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Bitcoin Giant MicroStrategy Hit by X Account Hack, Users Lose Funds in Phishing Scheme

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MicroStrategy Inc., renowned for its significant Bitcoin holdings, faced a security breach when its X account fell victim to a phishing scheme, leading unsuspecting users to lose funds.

The incident unfolded on Monday in Asia as an unidentified attacker posted a now-deleted message on the company’s X page, enticing users with a purported promotion for a new coin supposedly backed by MicroStrategy.

Upon clicking the link, users were redirected to a fraudulent website, resulting in approximately $440,000 being stolen from individuals who were deceived by the scam.

Crypto security analysts, including firms like PeckShield and independent investigators like ZachXBT, promptly raised alarms about the compromise of MicroStrategy’s X account.

MicroStrategy, headquartered in Tysons Corner, Virginia, did not immediately respond to inquiries regarding the security breach.

The company’s co-founder, Michael Saylor, has been a vocal advocate for Bitcoin, leading the firm to allocate a substantial portion of its cash reserves into the digital asset, now valued at roughly $10 billion.

The incident underscores the persistent challenges faced by cryptocurrency platforms in safeguarding user accounts against sophisticated cyber threats.

As investigations continue, the broader crypto community remains vigilant against similar phishing exploits, emphasizing the importance of robust security measures in the digital asset ecosystem.

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