Sanctions on Russia's central bank might push Bitcoin above the US$1 million mark

More than a month since the sharp dive of the crypto market caused by the start of Russia's invasion of Ukraine, analysts think that Bitcoin might go up by more than 30 times this year. According to traders, the first pleasant surprises for investors could arrive this week.

In a recent note, analysts at investment management firm VanEck pointed out that the sanctions on Russia's central bank eliminated its USD, EUR, and JPY reserves. The team tried "to quantify the emergence of new gold or bitcoin-backed currency regimes" and their conclusion highlights an increase of about 16 times for gold and roughly 33 times for crypto.

Depending on the magnitude of the strains on financial and monetary systems, the estimates of US$31,000 per ounce of gold and US$1,300,000 per Bitcoin might end up being lower than what will happen. However, this extreme scenario is based on the expectations that more countries will begin buying cryptocurrencies, following in El Salvador's footsteps. Obviously, the fact that Russia's central bank has lost access to most of its foreign reserves remains the key factor in VanEck's predictions.

Right now, Bitcoin is at US$45,996, which translates to a 22 percent drop compared to a year ago, as well as a monthly climb of nearly 17.5 percent. According to Coinbase, Bitcoin currently represents 33 percent of the entire market, with a capitalization value of almost US$875 billion.

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Disclaimer: The information reported here should not be used as a basis for any personal investment decision. Notebookcheck does not offer cryptocurrency, NFT, or other trading, investment, or financial advice.