Published: 05.04.2022
Article reading time:
2 minutes.
Since the beginning of the year, bitcoin has not shown a significant upward trend. But analysts at asset management company VanEck believe that the geopolitical situation will push BTC to $1.3 million.
In their report, VanEck analysts write that the rise in the prices of bitcoin and gold can be “truly terrifying.” This will be affected by the geopolitical situation, sanctions against Russia and a significant acceleration of inflation around the world. According to them, the imposition of sanctions on the reserves of the Russian Federation in the currencies of other countries can change the attitude towards fiat money.
“Our Emerging Markets Bond Investment Group has attempted to quantify the emergence of new currency regimes backed by gold or bitcoin. The bottom line is that the upside potential for gold and bitcoin is really huge. Thus, the group estimated the rise in gold prices to $31,000 per ounce, and the bitcoin rate to $1.3 million. Preparing for greater restrictions on the financial and monetary systems results in price increases,” the report says.
At the same time, the authors of the report, Eric Fine, Head of Emerging Markets Debt and Natalia Gurushina, VanEck’s Chief Economist for Fixed Income Strategies in Emerging Markets, doubt this development. In their opinion, for this “extreme scenario” it is necessary that gold or bitcoin become the world’s reserve assets. Therefore, the forecast should be changed downward.
Earlier, the American investment strategist Lyn Alden spoke about the fact that the central banks of various countries will begin to use bitcoin as a reserve asset. She also noted the geopolitical situation as a reason for this development.
Source: Bits
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