The value of Bitcoin may double in the not-so-distant future, according to one of Russia’s main banking and investment services providers.
The forecast comes amid a wave of price predictions triggered by the latest all-time high of the cryptocurrency with the largest market cap.
Russian bank sees Bitcoin selling much higher
The price of Bitcoin (BTC) may reach the range of $200,000 – $250,000 in the medium term, analysts at VTB My Investments are predicting.
The forecast was made public by Artyom Markin, investment advisor at VTB, Russia’s second-largest banking institution, formerly known as Vneshtorgbank.
My Investments is the brokerage arm of the majority state-owned VTB, a leading provider of banking and investment products on the Russian market, where crypto derivatives, including Bitcoin futures, have been gaining traction.
“The rate set a new historic maximum literally yesterday, having moved above $125,000, and according to our estimates, the growth potential is far from being depleted,” Markin commented during the VTB-organized “Russia Calling! Yekaterinburg” investment forum.
Quoted by the TASS news agency and the Russian crypto news outlet Bits.media on Tuesday, the expert elaborated:
BTC hit a new all-time high this week by exceeding $127,000 on Monday after first breaking above $125,000 per coin on Sunday. Its previous ATH was in mid-August, when it almost touched $124,500.
Markin further emphasized BTC’s limited supply, pointing out that most of the coins have already been minted, explaining: “This means that supply is objectively limited, while demand continues to grow, supporting its price.”
Pavel Durov, founder of the popular messenger Telegram, recently shared his belief that Bitcoin will eventually hit $1 million, citing the same reasons. A Russian financial analyst later agreed that this could happen in the next 5 to 10 years.
7-day price chart, Source: CoinmarketcapRussia still stubborn on Bitcoin legalization
The representative of the government-controlled Russian banking giant took the opportunity to highlight the risks associated with direct investments in digital assets.
“Bitcoin, like other cryptocurrencies, is issued in foreign jurisdictions, where Russian investors may not have sufficient protection from negative actions by issuers,” the consultant insisted.
While he ignored the fact that Russia itself has a significant share in the mining industry behind the crypto, which it legalized last year, TASS corrected him in its report, noting the coin “can be issued by any user participating in the decentralized cryptocurrency system.”
Alternatively, Artyom Markin remarked, futures tracking the price of cryptocurrencies, such as Bitcoin ETFs (exchange-traded funds), now available to qualified investors in Russia, can be an acceptable investment option.
Financial regulators in Moscow, mainly the Central Bank of Russia (CBR), remain stubbornly opposed to legalizing the free circulation of cryptocurrencies like Bitcoin and direct investments in them.
However, the monetary authority proposed in March a special “experimental legal regime” that allows Russian companies to use coins in foreign trade, bypassing financial restrictions imposed by the West over Moscow’s war in Ukraine.
VTB, a major player in the Russian banking sector, serving both retail and corporate clients, was sanctioned by the U.S., the European Union, and the U.K. over a decade ago.
Then, in May, the CBR authorized financial firms to offer crypto derivatives to a small group of “highly qualified” investors, a move both approved and, at the same time, criticized by the country’s crypto community over restricting access for anyone else but corporations and rich individuals.
The Ministry of Finance has been more open to Bitcoin, calling for easing the requirements for admitting investors to the strictly supervised crypto market and urging a national strategy for digital assets that would allow Russia to use cryptocurrencies in support of economic development.
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Source: https://www.cryptopolitan.com/bitcoin-may-climb-russian-bank-predicts/
