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- Bitcoin gains grounds in the global financial system as the West weaponizes the US Dollar, says an IMF official.
- With growing institutional interest, Bitcoin (BTC) has continued to show strength and could rally further to $35,000.
U.S. Sanctions and ways to weaponize the U.S. Dollar are providing grounds for Bitcoin to improve its share in the global financial market, said International Monetary Fund’s (IMF) executive director for Russia, Aleksei Mozhin.
He said that the West’s decision to lock out certain countries from the global payments system will force them to look for a substitute payment option. As per the new report from Sputnik, Mozhin said that the world saw how the US and its allies are using economic and financial sanctions in order to penalize Russia for its war on Ukraine.
He added that the use of sanctions will result in a more divided global economy. “The blatant use by the West as a weapon of international trade, finance, as well as the dollar and the euro itself, makes the fragmentation of the world economy not only inevitable but also irreversible,” said the IMF official.
Ever since facing the US sanctions over the last year, Russia has considered the use of Bitcoin for international settlements. It’s also contemplating introducing the legality of cryptocurrency within its financial system.
Bitcoin’s decentralized nature keeps it free from the shackles of any financial system making it absolutely free and borderless. Andrey Kostin, CEO of VTB Bank, shared a similar opinion last week on the growing use of Bitcoin and the Chinese Yuan.
He stated that notable shifts are taking place during the global economic crisis, coinciding with China’s emergence as a leading global economic force. Kostin further expressed his belief that the era of the US dollar’s dominance is waning, and he expects China to gradually relax its currency restrictions.
Bitcoin Prepares for Further Upside
Amid the flurry of strong Bitcoin ETF applications this month in June, Bitcoin (BTC) quickly recovered the lost ground and surged above $30,000. Bitcoin has continued to hold this level since then and is currently trading at $30,762 with a market cap of $597 billion.
Analysts say that as Bitcoin continues to show strength, it’s poised for a rally further. Popular crypto analyst Ali Martinez noted:
Bitcoin is back above stable support! On-chain data shows 1.84 million addresses bought nearly 910,000 $BTC between $29,930 and $30,800. As long as BTC can hold on top of this demand zone, it has a good chance of advancing toward $35,000 due the lack of resistance ahead.
Based on CoinGecko data, Bitcoin currently holds approximately 49 percent of the $1.2 trillion cryptocurrency market, marking its highest share in over two years.
Investors are closely observing the expiry of Bitcoin options at the end of June, which have a total notional value of nearly $4.9 billion, as reported by Deribit, a derivatives exchange.
