The value of Bitcoin (CRYPTO: BTC) just plummeted more than 10% over the past 24 hours, but one expert reckons this merely presents a great chance to buy.
In line with growth stocks, the flagship cryptocurrency is feeling the wrath of investors wanting to shift away from so-called “risk assets”.
The 24 hours ending Tuesday morning Australian time was the largest one-day plunge since January, according to Bloomberg.
Bitcoin has now lost almost 34% of its value so far this year and has halved since November.
But DeVere Group chief Nigel Green forecasts that large Bitcoin investors, dubbed “whales”, will take the chance to buy more on the current dip.
“This is because the robust fundamentals of the world’s largest cryptocurrency — including being a digital, borderless, viable, decentralised, tamper-proof, unconfiscatable monetary system — remain the same.”
Bitcoin’s bull case
Green also predicted a significant milestone this week would pique the interest of whales and institutional investors.
“Strike, a fintech payment processor for the Bitcoin Lightning Network, is now integrating with BlackHawk Network, the largest payment processor in the world,” he said.
“This allows Bitcoin to enter the physical locations of retail outlets and hospitality venues, which make up 85% of all US transactions.”
This deal would prompt large investors to increase their Bitcoin exposure, according to Green.
“As typically happens with price dips, they will shrug off concerns about dips, using them as buying opportunities, and focus on long-term trends,” he said.
“Institutional investors and well-resourced individuals will be moving to buy what they are currently regarding as ‘discounted’ Bitcoin.”
Bitcoin’s bear case
Not every expert is as upbeat about Bitcoin as Green.
Michael Novogratz is the founder and chief executive of Galaxy Digital Holdings Ltd (TSE: GLXY), which invests in digital assets.
In an earnings call overnight, he forecast that more pain would come for crypto owners before valuations settle down.
“My instinct is there’s some more damage to be done,” he said, according to Bloomberg.
“And that will trade in a very choppy, volatile, and difficult market for at least the next few quarters before people are getting some sense that we’re at an equilibrium.”