Well-known economist and analyst Alex Kruger expressed the opinion that the cryptocurrency market has reached the bottom, and if the geopolitical situation does not worsen, investors will soon see the growth of digital assets.
Alex Kruger expressed concern about the hypothetical possibility of Russia using cryptocurrencies to circumvent US and EU sanctions. He posted a tweet warning investors that if Russia turns to cryptocurrencies to circumvent US sanctions, the digital asset market will be of interest to US regulators.
“Russia using cryptocurrency to circumvent sanctions would lead the digital asset market to a bearish scenario. Don’t expect this to happen. But be careful what you do,” he wrote.
Krueger suggests that sanctions circumvention will be enough for U.S. regulators to ban digital assets in order to protect national security. The United States, along with allies and partners, has imposed sanctions against Russia that include cutting off Russia’s major financial institutions from the US financial system. According to Krueger, prices for cryptocurrencies and traditional assets such as stocks and commodities bottomed out after that:
“Stocks and cryptocurrencies have now bottomed out. Now everyone is investing in precious metals. This is what the market situation tells us. It could be even worse: China invades Taiwan, Russia takes over even more countries. Then the market will fall further.”
In his opinion, the cryptocurrency market has already shown the worst-case scenario and is set for a positive trend. Krueger believes that the behavior of the market is traditional for periods of history associated with a deterioration in the geopolitical situation. He stressed that the conflict is quite large-scale, but this did not greatly affect the cryptocurrency market.
This week, amid heightened tensions in eastern Europe, experts at The New York Times opined that without Russia’s digital assets, it would be impossible to survive the US sanctions. Recently, the National Bank of Ukraine suspended the issuance and distribution of electronic money, as well as the use of electronic wallets. Against this background, some citizens of the country are turning to cryptocurrencies.
Source: Bits
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