Bitcoin, the world’s best-known cryptocurrency, has reversed declines in recent days and rose 4.4% to $43,460 this morning, after a 10% gain yesterday.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: “The direct implication of Russian sanctions was a surge in cryptocurrency prices, and especially Bitcoin. The coin, which was moving along with the risk assets less than a couple of days ago, is now The Asset that Russians and Ukrainians rely on to get their funds out of the traditional system which has become very hostile to them. It is reported that Bitcoin purchases using Rubles and Hryvnias soared as Russia imposed sanctions on its citizens.
“Being able to transact value in Bitcoin also helps Russian oligarchs go around the Western sanctions. It may also help Russian companies and even the Russian central bank to move funds as these entities can no longer access US dollars, and most of the Russian banks are no longer part of the SWIFT system.
“If there is no policy response from the West to the Bitcoin adoption from Russia, the positive trend could further develop and make Bitcoin the number one safe haven asset in the war setup. Yet, how much the West would tolerate the Bitcoin interference to its political decisions is a major question, that increases the regulatory risks for cryptocurrencies.
“For Russians though, the cryptocurrency risk is definitively worth be taken.”
The Bitcoin price is likely to hit $50,000 before the end of this month amid rising geopolitical tensions and growing institutional investments, predicts the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The bullish prediction from deVere Group’s Nigel Green comes as the world’s biggest cryptocurrency by market capitalisation jumped in price by more than 15% in a day.
He says: “In the past 24 hours, Bitcoin surged by more than $6,000 at one point to above $44,000 – its sharpest daily increase since February 2021.
“As it currently stands, I can see no reason why this price momentum should falter. I think we can expect to see Bitcoin hit $50,000 by the end of this month.
“It’s still too early to say whether it will then go on to reach the all-time highs of $68,000 from November 2021.
“However, it’s not that big a leap from 50k to 68k and the world and the crypto market are moving at an accelerated rate in recent times. It’s certainly not out of the realms of possibility.”