Nigel Green, chief executive of deVere Group, claims that bitcoin’s sustained foray above $8,000 this morning looks robust enough to build for a push even higher, propelling the value of the decade-old cryptocurrency to heights unseen since 2017. He said: “Ditching its trademark volatility, bitcoin has been stuck in no-man’s land for over a week oscillating within a $600 range. “But the price of the world’s largest cryptocurrency surged to the upside on Wednesday and cleared the key $8,000 resistance level – this could indicate that Bitcoin is on the verge of the next bull run.” Analysts often refer back to past charts to see how periods of low volatility will frequently precede extended bulls runs – an historical fact Mr Green believes is about to repeat itself.
He said: “For instance, bitcoin went through a relatively stable period in February this year, then the price ran towards $4,200 in March and to $9,090 before the end of May.
“Should bitcoin experience a new run, we can expect it to deliver a boost to the wider crypto market, with other leading cryptocurrencies such as Ethereum, XRP and Litecoin, rallying too.”
Periods of market volatility are typically welcomed by traders and investors as they often present buying opportunities and deliver positive rewards.
Mr Green added: “However, I think moving forward, we are likely to see less extreme volatility.
“Lower volatility is a sign of the maturation of the cryptocurrency market.
“Although volatility will return again, as it does in all financial markets, I think we’re experiencing a fundamental shift and, overall, the crypto market will have less turbulent bouts in the future.
“This is essential for the cryptocurrency sector long-term as it will further encourage mass adoption and institutional investment.
“Of course, no-one knows for sure when the next crypto run will happen, but current relative low volatility suggests it is imminent.”