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The sale of only $1.4 billion in bitcoin by Russian oligarchs will provoke a collapse in the cryptocurrency price by 10%, Chainalysis predicts
Attempts by Russian oligarchs to avoid sanctions through cryptocurrencies are futile, since the market is not sufficiently liquid for such purposes. Analysts of Chainalysis reported this on their blog.
According to experts, the volume of bitcoin in free circulation is about $124 billion, or 14% of the group of the first three assets by capitalization, if we take into account the turnover of ether (ETH) and tether (USDT) combined – $296 billion.
However, even just under $300 billion in free circulation is still not enough to satisfy the demand of Russian oligarchs, analysts say. Previously a study by the National Economic Bureau in 2017 showed that Russian oligarchs already owned about $800 billion in offshore funds. this amount does not take into account assets located in Russia itself.
Chainalysis simulated a $1.4 billion bitcoin offload scenario on 19 exchanges and concluded that in this case, the price of the cryptocurrency would decrease by 10%. Attempts to unload at least $ 7 billion can collapse the exchange rate by 50%.
“Any attempt to liquidate $800 billion or even $100 billion worth of cryptocurrencies is likely to lead to a major price collapse, making it impossible for large-scale sanctions evasion against Russia through cryptocurrencies,” Chainalysis said.
Earlier, Russian Prime Minister Mikhail Mishustin said that the Russians had withdrawn over ₽10 trillion (~$120 billion) to cryptocurrency wallets. For this, according to Mishustin, the Russians have already registered about 10 million crypto wallets. About why the Ministry of Finance of the Russian Federation needed experts in the field of cryptocurrencies – read the material of the BeInCrypto editors.
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