The value of cryptocurrencies will double within the next 12 months, predicted the CEO of deVere Group, a global independent advisor with $12 billion in assets under advisement.

The recent dip in price of 8%, due to the discovery of a new Covid-19 variant, will be seen as a buying opportunity by investors, Nigel Green, who is also the founder of deVere Group, said in a statement yesterday. Cryptocurrency has dropped 20% since its all-time high in early November.

“The discovery of the new Covid variant has rattled global stock markets as it brings in a new wave of uncertainty—which they hate,” Green said. “The crypto markets have mirrored the reaction of other financial markets. This underscores how mainstream digital assets have now become, as an increasing number of institutional investors have piled into bitcoin this year.”

Institutional investors have been reducing exposure to bitcoin in the last few days, as they have shed more traditional stocks, since Omicron was discovered, he said. This happened despite the fact that the market, including cryptocurrency, is likely to go up again soon, he said.  Green called the reductions “a knee-jerk reaction” that will correct itself, just as the market recovered from its reaction to the Delta variant.

The world has a better understanding of how to deal with variants now and investments in digital currencies are beginning to be regarded as a safe haven asset, similar to gold, he added. Bitcoin is often referred to as “digital gold” because, like the precious metal, it is a non-sovereign medium of exchange, which is decentralized, scarce, a store of value and a hedge against inflation, he said.

Bitcoin is seen as a shield against inflation because of its limited supply, which is not influenced by its price, he said.

“As such, amid some peaks and troughs along the way—as markets never move in a straight line with traders taking profit—we can expect to see the price of bitcoin and other major cryptocurrencies continue their upwards trajectory,” said Green, who described cryptocurrencies as “the inevitable future of money,” which is "unstoppble."