After the Russian invasion of Ukraine, the crypto market faced tremendous selling pressure; but since then, the flagship cryptocurrency Bitcoin has rebounded, climbing above its two-week high of $44,000.
Speaking to CNBC’s Squawk Box, billionaire investor Bill Miller discussed Bitcoin’s potential to serve as a safe haven asset during times of international unrest. The American investor explained why Russia may turn to Bitcoin to fight inflation:
“16% of Russia’s 640 billion dollar reserves are in dollars and 32% in euros. Almost 50% of their reserves are in currencies controlled by people who want to harm them. From Russia’s point of view, this is not a great location. They have 22% of gold reserves and this is the only part of their reserves that other countries cannot control.”
“They have almost 50% of their reserves in currencies that are controlled by people who want to do them harm…they have 22% in gold that is the only part of their reserve that other countries can’t control,” says Bill Miller on Russia. “It’s very bullish for #bitcoins” pic.twitter.com/zWihekfeyk
— Squawk Box (@SquawkCNBC) March 2, 2022
Analyzing the Bitcoin price, Miller believes the current geopolitical situation surrounding Russia is a “bullish for Bitcoin” sign and describes it as “unique”:
“If you’re a country with a non-reserve currency (there are about 100 of them), you might consider something else that other countries can’t harm you, that isn’t affected by inflation or is produced in larger quantities. So I think this is very bullish, especially for Bitcoin.”
Earlier this week, Russian President Vladimir Putin decided to hold a crisis meeting with his top economic advisers after the ruble hit a historic low against the US dollar.
On February 28, the Russian central bank, following the record plunge of the ruble, implemented emergency measures that included a significant increase in interest rates. Accordingly, the Central Bank of Russia increased the policy rate from 9.5 percent to 20 percent with an increase of 1050 basis points.
As a result of the fall of Russia’s national currency Ruble-Bitcoin (RUB/BTC), volumes hit a 9-month high; However, the volume of Ukrainian hryvnia in the crypto market has also reached record highs as it has been severely affected.
Currently, Bitcoin is trading at $44,273, up 1.99% in the last 24 hours, with a market cap of $839 billion, according to CoinMarketCap data.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.