Recent Bitcoin Sell-Off “Standard Market Correction,” Says deVere Group CEO
You might have noticed, not so long ago, that bitcoin was up in the $8,000 range. I say “was” here because now, it’s back down to a hair under $7,000. That might seem like the beginning of a disaster, and possibly a good time to sell out. Not to Nigel Green, founder and CEO of deVere Group, who dropped us a line to let us know that this isn’t the beginning of the end, but rather a “standard market correction” that we should expect to see of a maturing market.
It would be easy to lose hope in the hang on for dear life, or HODL, strategy, but Green makes it clear that this is all fairly standard. With bitcoin close to its lows for 2018, and other leading altcoins getting likewise socked, it might look like the cryptocurrency party is over. With a bullish rally following recently, however, it suggests less of a catastrophe and more of a familiar action when it comes to investing: profit taking.
Green notes “…in today’s world, a digital, global currency simply makes sense to them. Or to put it another way, they believe that cryptocurrencies are the future of money. Such investors also appreciate that institutional and regulatory support is increasingly inevitable and could happen sooner than many previously expected. In addition they are seeing for themselves how more and more global financial institutions, major corporations and household name investors are now working with cryptocurrencies and blockchain, the technology that underpins them.”
The recent bounce back up we saw following the selloff lends credence to this notion. Bitcoin has been on a fairly stable upward track since August 20, seeing gains for around a full week. That’s a compelling bit of logic in its own right; while it’s likely smarting that it was hovering around the $8,000 mark in July and it’s lost a thousand bucks in value since, the comparative stability of bitcoin prices suggests that it may have found a floor, which would be good news for anyone who’s planning to take the HODL strategy as far as it can go.
Only time will tell how bitcoin averages out, but it’s certainly a good sign that it’s held the line thus far.