This Thursday, Ukraine legalized Bitcoin and other cryptocurrencies, for which cryptocurrencies are dyed green and their capitalization amounts to 1.8 trillion dollars, ignoring the Federal Reserve (Fed) rate hike.
While resistance to overcome is at $42,000 for $45,000-$46,000 to be brought back into play, a strong support level at $38,000 has been showing be very solid and has supported bitcoin during its recent falls, although it has eroded on several occasions and analysts do not rule out that the $37,000 could be put to the test.
Bitcoin at a million?
Arthur Hayes, co-founder of the exchange Bitmex, He shared a series of reflections based on the current financial context, marked by the war between Russia and Ukraine. According to the businessman, the consequences of the economic sanctions imposed by the West on the Kremlin will lead to a massive crisis, which will shoot up the price of gold towards $10,000 and that of bitcoin (BTC) to one million.
Hayes explained that Russia is the main exporter of energy in the world, so the cut off of trade relations around the world will inevitably lead to a global crisis. In fact, he pointed out that it will be the end of the “petrodollar/eurodollar monetary system”.
“I am 100% certain that there will be a financial crisis of epic proportions based on the losses faced by commodity producers and traders that touch all aspects of the globalized financial system,” he explained.
One of the most striking points of his analysis is that of alternative assets. The Bitmex co-founder suggested that demand pressure will push assets such as gold towards “terrific prices that seem unfathomable”. From his perspective, the precious metal could climb towards $10,000 an ounce.
This is where BTC comes into the conversation. If all alternative assets would “benefit” from the crisis in the financial system, the leading cryptocurrency will not be left out. For Hayes, it can climb to a million dollars.
“As gold moves above $10,000, Bitcoin will move to $1,000,000. The bear market in fiat currencies will trigger the largest wealth transfer the world has ever seen.”he concluded.
More news about Bitcoin and cryptocurrencies
NGO Bitcoin Argentina asks to know what the regulation of cryptocurrencies will be like
Robert Kiyosaki predicts “the end of the dollar” and recommends another haven
Six months of Bitcoin in El Salvador: how was the experience with the legal tender cryptocurrency?
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
