Bitcoin’s attraction never seems to ebb despite the current price struggles. The pull of BTC on retail and institutional investors is well known. Fresh predictions suggesting that the King coin would zoom to $1 million by 2030 is exciting potential BTC buyers.
Now a Harvard University research paper has urged central banks of the countries that face the risks of sanctions by the US to bolster their foreign currency reserves by adding bitcoin (BTC).
The paper “Hedging Sanctions Risk: Cryptocurrency in Central Bank Reserves” has been written by Matthew Ferranti, a doctoral student in economics at Harvard University.
After noting that efforts are being made to increase the share of gold in national reserves by many countries, the author suggests adding BTC in addition to gold would strengthen the resilience against sanctions. Increasing BTC reserves will also solve address the problems in acquiring sufficient physical gold.
Ukraine’s war has made many central banks become favorably inclined to bitcoin. Ferranti pointed to the freezing of Russia’s international central bank reserves in the aftermath of the Ukraine war as an example. The author argues that bitcoin as a proof-of-work-based digital asset is very appropriate as a sanction hedge.
BTC price still below $17k
Meanwhile, the projection about bitcoin crossing the $17,000 resistance level did not turn true. New updates suggest BTC appears to be forming a double-top pattern and falling below the $16,000 support.
BTC has climbed above the $16,000 and $16,500 resistance levels. After the bears became active near the $16,800 zone, the BTC price faced another major rejection near the $16,800 level and headed to a double-top pattern.
