DeVere CEO: Bitcoin panic sellers are a Christmas present for the rich
The price of bitcoin is currently $ 47,000 due to a larger macro risk reduction event ahead of the expected U.S. Federal Reserve meeting today.
But as panic sellers throw their coins at a loss, DeVere CEO Nigel Green claims those selling at current prices are “practically giving” away their BTC in what is essentially a Christmas present for the “rich”.
Bitcoin panic sellers are a gift for the rich
In an email titled “Bitcoin Panic Sellers A Christmas Giveaway for Wealthy Traders,” deVere CEO Nigel Green shared some comments on the current cryptocurrency sale. Bitcoin has fallen 38% from local highs, and other cryptocurrencies have taken a worse hit ahead of today’s Federal Reserve meeting.
Related reading | Despite the recent downtrend, Bitcoin’s net flows remain largely negative
Green agrees, saying that “the recent sell-off was sparked by a sense of broader risk aversion which has also impacted many areas of the global stock market.”
“This happened as inflation skyrocketed and, as a result, encouraged central banks to tighten monetary policies, endangering the liquidity that has benefited many asset classes, including Bitcoin,” Green added. “Central banks – including the Fed, which will make a key announcement on Wednesday – are now being forced to act to fight inflation.”
Past strings of red have been like gifts for buyers | Source: BTCUSD on TradingView.com
Do whales dream of a crypto green Christmas?
Regardless of the macro risk, Green believes the wealthy are using the massive sell-off as an early Christmas present at the expense of panicked sellers who “practically cede their cryptocurrencies to wealthy buyers who hoard, hoard, hoard.”
Related reading | Bitcoin Hashrate hits new record after Chinese crackdown
“Wealthy crypto investors are always buying troughs. It’s because they know that digital, global, borderless and decentralized money is clearly the future, ”continued Green.
“Long-term, wealthy crypto investors generally benefit from frightened panicked sellers by buying their digital currencies cheaply to improve their investment portfolios. Doesn’t a drop in Bitcoin prices seem particularly beneficial for these investors in these times of worrying inflation? “
The answer to this question may soon be resolved. Past massive sales combined with extreme fear and serious macro risk have often resulted in some of the biggest and most spectacular rallies ever. Black Thursday and Bitcoin’s rebound from $ 3,800 to $ 65,000 is the perfect example.
But it all comes down to the final hours of the Fed meeting today, and whatever the outcome. One of Ned Davis Research’s rules for success in the markets is “Don’t fight the Fed”.
– Tony “The Bull” Spilotro (@tonyspilotroBTC) December 15, 2021
To follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC telegram for exclusive daily market information and technical analysis training. Note: The content is educational and should not be taken as investment advice.
Featured image from iStockPhoto, Charts from TradingView.com