Veteran investor Mark Mobius said the recent rally in bitcoin can be attributed to Russians buying into the cryptocurrency.
“I would not be a buyer, but if I was a Russian I would be a buyer,” Mobius told CNBC’s “Capital Connection” on Tuesday.
“I would say that’s the reason why bitcoin has shown strength now — because the Russians have a way of getting money out, getting their wealth out,” said Mobius, founding partner of Mobius Capital Partners.
Bitcoin prices surged 10% on Monday as sanctions were imposed on Russian institutions, including banks, in response to the country’s invasion of Ukraine.
Since the invasion began Thursday, transactions on centralized bitcoin exchanges in both the Russian ruble and the Ukrainian hryvnia surged to their highest levels in months, according to crypto data company Kaiko.
Bitcoin was trading around $43,327 in the early hours of Tuesday morning Eastern Time