Central banks are preparing to raise interest rates again before the end of this year. A CEO of a top independent financial advising firm claims that there is a need for Cryptocurrency investors to leverage increased market volatility until the end of the year to increase their holdings of Bitcoin and Ether.
Increasing Interest Rates
deVere Group chief executive Nigel Green said that decisions had been made to fight against surprisingly tenacious inflation. Markets anticipate that decision-makers at prominent central banks, such as the U.S. Federal Reserve and the Bank of England, will likely continue to be steadfast in raising interest rates.
In remarks delivered on Thursday, five key executives of the Fed and the world’s most influential central bank stuck to their hawkish stance. They said that the inflation rate is still way too high and that they won’t wait any longer to raise interest rates.
The deVere CEO went on to say that the Monetary Policy Committee (MPC) members have been giving “quite clear clues.” He said that they are advocating for a significant rate increase at the MPC’s upcoming meeting on November 3rd.
Because businesses will borrow less money when interest rates are higher, stock markets typically experience a decrease in value. Their earnings will therefore increase more slowly than anticipated by investors. Most stock market sectors are affected, with some significant exceptions, such as the financial sector.
Increased Volatility
The deVere CEO said Before the end of 2022, expect the cryptocurrency market to experience additional, possibly increased volatility. This is due to Bitcoin and Ether’s existing association with stock markets. But this won’t necessarily be regarded as a negative thing by professional investors.
The cryptocurrency market is currently no different from traditional financial markets. This is because some of the top investors in the world often use market volatility as significant buying opportunities. He explained that volatility might be a powerful investment technique when used correctly and economically.
Bitcoin Is Still Leading In The Market
The world’s best-performing asset class is still bitcoin. Bitcoin has consistently performed well in the traditional and cryptocurrency investing markets over the past few years. Over the past five years, when compared to other leading technology companies, Bitcoin outperformed Amazon, Google, Microsoft, and Apple by an average of 355.22%, 321.97%, 182.65%, and 166.76%, respectively.
Smart, long-term cryptocurrency investors will try to take advantage of panic-sellers. They will use the opportunity to purchase their digital currencies “cheap” to diversify their investment portfolios.