A Bitcoin price drop will trigger a surge in institutional investment, driving up the price permanently, according to Nigel Green, chief executive and founder of deVere Group.

His latest view comes after the world's largest cryptocurrency, which is up nearly 500% since the rally started in October, fell after hitting all-time price highs earlier this month of more than $61,000.

Green said: "It's likely that institutional investors are waiting for prices to dip a little further and are poised to significantly increase their exposure to crypto when they do. Should this happen, as we expect it will, we know that this will drive prices upwards.

"However, this momentum currently appears to be slowing down, with Bitcoin's recent consolidation sitting around $55,000."

He added; "The current slow-down, together with greater ongoing regulatory scrutiny, can be expected to prompt the herd-like mentality of many inexperienced investors who will now cash-out their Bitcoin, forcing the price temporarily lower.

"And this is when institutional investors, many of whom are just beginning to dip their toe in the crypto water, will likely dive in. They will employ the ‘buy the dip' mantra.

"With them, they will bring their enormous capital, clout and expertise to the market, and this will then prove to be another considerable confidence shot for even more retail investors."