- Bitcoin's price recovery might be due to Russians choosing to store their wealth in the cryptocurrency, Mark Mobius said.
- "That's an avenue to get money out of Russia," he told CNBC Tuesday, after sanctions were imposed on the country.
- Mobius said Europe isn't a safe bet for investors because President Vladimir Putin may ramp up aggression in Ukraine.
Bitcoin's rally is being driven by Russians wanting to store their wealth somewhere safe, according to legendary investor Mark Mobius.
After Russia invaded Ukraine on Thursday, the US and its allies imposed a string of sanctions designed to isolate the country's economy. The West has effectively frozen Russia's international trade relations, and clients of certain Russian banks are unable to liquidate their foreign-exchange reserves.
Russian President Vladimir Putin on Monday ordered a ban on Russian residents transferring money abroad, effective Tuesday, in retaliation for the sanctions.
The invasion initially brought even more volatility to the crypto market, while it was already struggling with the prospect of interest-rate hikes. Bitcoin, ethereum, and other major cryptocurrencies have swung wildly in price in the past week, turning lower as investors chose to pile into safe-haven assets.
But bitcoin rose 14% Tuesday to around $44,495, prompted by talk that the digital asset is being bought by parties in both Russia and Ukraine.
The founder of Mobius Capital Partners, who isn't particularly a fan of cryptocurrency investments, told CNBC Tuesday he would only buy bitcoin if he were Russian — given the current geopolitical tensions.
Mobius said he'd heard from a property agent in Dubai that several Russians with Swiss-linked bank accounts, who are looking to buy real estate, are trying to place their money in bitcoin.
"If they can pay with bitcoin, of course, that's an avenue to get money out of Russia," he said. "So I would say that's the reason why bitcoin is showing strength now, because the Russians have a way of getting their wealth out."
"Otherwise, they're really in trouble, with all the closures of the different avenues for them to transfer money."
For global markets overall, the legendary investor suggested the worst is yet to come.
"Europe is not a very safe place to be, obviously, because Putin may ramp up his aggression and may decide to go after some of the European countries that are supporting Ukraine."
He recently touted gold, Chinese stocks, and other emerging-market equities as safe bets for investors looking to cushion against the Russia-Ukraine crisis.