empty
04.04.2022 11:42 AM
VanEck believes Bitcoin can reach $1 million

At the beginning of 2022, investors changed their approach to investing in the cryptocurrency market and specifically Bitcoin. The changes were associated with geopolitical processes and the economic crisis, which was provoked by a large-scale war on the territory of Ukraine. High-risk assets faded into the background, and investors focused on protecting existing capital. In this regard, gold showed a significant increase, which is historically considered a reserve vehicle for big capital.

This image is no longer relevant

However, subsequently, there was a local return to the normal flow of pre-war investment flows. This was evident in the growth of quotes of indices of high-risk assets, such as SPX. Despite this, Bitcoin has significantly reduced its correlation with high-risk financial instruments, which also indicates a gradual transformation of the asset. Glassnode data confirms that the positive correlation index between BTC and SPX has reached the level of Q4 2020.

At the same time, the cryptocurrency managed to update the local high at around $48k. This is a direct consequence of the fact that investors began to consider Bitcoin as a means of hedging risks, as well as the main reserve financial instrument. And if the ability of cryptocurrencies to protect capital from inflation, and even increase it, has long been known to everyone, then the use of Bitcoin as a reserve is a relatively new trend.

Investment flows into cryptocurrency with such a stated purpose began after Biden signed a decree on the regulation of the crypto industry. This turned out to be a very important signal for large investors. However, a much more important reason for increased interest in Bitcoin as a reserve was the freezing of the entire dollar and gold and foreign exchange reserves of the Russian Federation.

This image is no longer relevant

Large companies and hedge funds have realized that the U.S. dollar and gold are not full-fledged guarantors of capital protection. Unlike Bitcoin, which has a decentralized structure and anonymity that allows you to sell assets for your own purposes, regardless of sanctions. This makes the cryptocurrency an attractive reserve with large revenue potential.

The Luna Foundation company in March acquired BTC worth about $1.4 billion to secure its stablecoin. This example can significantly increase the investment attractiveness of an asset in a new incarnation. VanEck even admits that the cost of one BTC coin can reach $1.4–$4 million if the cryptocurrency is made a global reserve. And taking into account the fact that both Bitcoin and gold have increased in price since the start of the war, it can be assumed that cryptocurrencies have the potential to replace precious metals as a full-fledged reserve in the long term.

Despite this, Bitcoin has stalled at around $46k in the long term. The cryptocurrency failed to make a bullish breakdown of the $48k mark due to the low activity of large investors. Bitcoin simply did not have enough purchase volumes to continue the upward movement. With this in mind, the asset reached the local support zone at $45k–$46k.

The asset is confidently holding at the 0.236 Fibo level, but before fixing the price and starting consolidation, the cryptocurrency tested the $44.2k mark, where the 0.382 Fibo level passes. As of April 4, we should expect the flat dynamics to remain, since the last three candlesticks do not demonstrate prerequisites for an impulsive movement in any direction.

This image is no longer relevant

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Crypto investors still overwhelmed by optimism

Despite the ongoing correction, investor sentiment toward buying crypto assets remains positive, as indicated by the so-called Fear & Greed Index, which, as we noted earlier, is still

Jurij Tolin 16:24 2025-05-30 UTC+2

Do you know the most profitable company in the crypto industry?

While Bitcoin and Ethereum saw a fairly solid correction toward the end of the week, the most profitable company in the crypto industry — Tether — may have been quietly

Jakub Novak 16:16 2025-05-30 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 30

Bitcoin and Ethereum continued their corrections, falling significantly throughout yesterday. The decline extended into today's Asian session, with Bitcoin updating its price to $104,500 and Ethereum testing $2,560. Thus

Miroslaw Bawulski 09:29 2025-05-30 UTC+2

Trading tips on crypto market for May 29 (North American session)

Bitcoin has shown a fairly solid rebound, climbing back above the $108,000 mark and breaking through $109,000. The chart below highlights a morning breakout through the $108,100 level. Statistics confirm

Miroslaw Bawulski 15:46 2025-05-29 UTC+2

Bitcoin recovers to $109,000

Bitcoin quickly rebounded to the $109,000 mark today. This rapid surge, especially following yesterday's dip to around $106,600, once again highlights the strong interest from large players who take advantage

Jakub Novak 15:04 2025-05-29 UTC+2

Bitcoin demand shows no signs of fading

Bitcoin demand has shown resilience once again. After a brief dip below the $107,000 mark, the decline was swiftly bought up, demonstrating that buyers remain active and confident

Jakub Novak 13:38 2025-05-29 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 29

Bitcoin is starting a correction, and Ethereum is showing signs of strength. Yesterday, Bitcoin dipped to around $107,000 before rebounding sharply — a sign that many traders are cautious about

Miroslaw Bawulski 08:56 2025-05-29 UTC+2

Bitcoin Emerges from Wall Street's Shadow: Why the Coming Months Could Be Pivotal for the Crypto Market

The announcement that Cantor Fitzgerald, one of the largest U.S. primary dealers, is launching Bitcoin-backed lending has reshaped the crypto market. Managing $2 billion in capital for this venture

Ekaterina Kiseleva 00:31 2025-05-29 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 28

Bitcoin failed to hold above the $110,000 level, while Ethereum again showed decent growth, fueled by news of a possible significant increase in the gas limit per block

Miroslaw Bawulski 10:04 2025-05-28 UTC+2

Bitcoin Remains Within a Range Conducive to Growth

Yesterday, Bitcoin and Ethereum continued to attract demand from traders and investors, maintaining strong prospects for the continuation of the bullish market. Meanwhile, the International Monetary Fund (IMF) stated that

Jakub Novak 09:36 2025-05-28 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.