Bitcoin price showcases correction after recent explosion
As per experts, BTC is currently in a phase of “monetary consolidation” following which it will ascend once again.
- Global fund manager VanEck believes BTC’s value could climb to $4.8 million in the future.
- Despite being hostile towards digital assets in general, the Russian government is not looking to ban its local mining industry.
- Inflation rates in the UK and US are currently soaring, hitting multi-decade highs recently.
Bitcoin (BTC) has showcased a small correction after scaling up to a relative high of $47,300 on Thursday. As a result, the flagship cryptocurrency is exhibiting a 24-hour loss ratio of -5.2% while still being in the green for the past month. At press time, BTC is trading at $46,685.
Some analysts believe that the digital asset’s 28% rise over the past fortnight has set it up for a period of consolidation, which in the long run “will be good for the currency.” One pundit believes that the coming few months will see Bitcoin’s price action rise slowly — much like it did in 2012 — with the altcoin market exploding in a big way.
American investment juggernaut VanEck believes that BTC’s valuation could rise as high as $4.8 million per token in case the asset ever becomes a “global reserve currency.” That said, there is a big “if” that stands in Bitcoin’s way since the fund manager believes the Chinese Yuan is a more likely contender for the title. VanEck executives Eric Fine and Natalia Gurushina have suggested an implied valuation range of $1.3 million to $4.8 million for BTC.
Over the last couple of years, VanEck has continued to increase its stake within the crypto industry via its highly popular Bitcoin Strategy ETF (XBTF) — an offering that has garnered over $30 million in net inflow. Furthermore, the company has also filed an application with the US Securities and Exchange Commission (SEC) to release a new ETF designed to focus exclusively on companies related to the gold and crypto mining sectors.
Russian government still positive toward its local Bitcoin mining industry?
Russia is currently in the process of devising a comprehensive regulatory framework for its crypto market. However, in a somewhat unexpected turn of events, the country’s Ministry of Finance extended its support for its local BTC mining industry. The country’s director for financial policies Alexey Yakovlev said he sees no point in imposing a ban on “retail or household Bitcoin mining.”
He further noted that the Russian government has already agreed on a proposed mining framework, such rig operators will be required to pay taxes. He added: “We believe it’s necessary to focus on the development of industrial mining, but it probably does not make sense to ban household mining.”
Bitcoin’s monumental growth in recent weeks seems driven by news of Terra, an algorithmic decentralized stablecoin, having amassed $1.5 billion worth of BTC. The firm also plans on acquiring an additional $8.5 billion worth of BTC over the coming few months.
Across the traditional finance market, the United Kingdom’s Consumer Price Index (CPI) — which serves as a key inflation marker — recently registered a year-on-year reading of 6.2%, much higher than its expected mark of 5.9%.
Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.
Disclosure: The author owns a range of cryptocurrencies at the time of writing