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El Salvador president predicts ‘gigantic price increase’ for Bitcoin

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Salvadoran President Nayib Bukele made yet one more bullish Bitcoin (BTC) prediction quickly after the Worldwide Financial Fund had urged his authorities to take away Bitcoin’s standing as authorized tender.

Bukele took to Twitter on Monday to foretell that Bitcoin will in the end see a “gigantic price increase” attributable to its restricted provide of solely 21 million digital cash.

The president cited Bitcoin’s shortage case, emphasizing there are “more than 50 million millionaires” on this planet, and there’s not sufficient Bitcoin if every certainly one of them wished to personal not less than 1 BTC.

“No enough for even half of them. A gigantic price increase is just a matter of time,” Bukele wrote.

There are greater than 50 million millionaires on this planet.

Think about when every certainly one of them decides they need to personal not less than ONE #Bitcoin

However there’ll ever be solely 21 million #Bitcoin

No sufficient for even half of them.

A big price improve is only a matter of time.

— Nayib Bukele (@nayibbukele) January 31, 2022

Bukele’s feedback got here shortly after the Worldwide Financial Fund (IMF) had urged El Salvador to finish its recognition of Bitcoin as authorized tender attributable to dangers associated to monetary stability and client safety. The IMF’s report adopted a pointy Bitcoin price decline, with BTC shedding about $10,000 of its worth in a interval from Jan. 20 to Jan. 25, based on knowledge from CoinGecko.

Bitcoin 30-day price chart. Supply: CoinGecko

The most recent Bitcoin crash induced main dollar-nominated losses to El Salvador’s Bitcoin reserves. As beforehand reported by Cointelegraph, the Salvadoran authorities made its first 200-BTC buy on Sept. 6, when BTC traded round $52,000. The federal government then purchased 420 BTC on Oct. 27 when Bitcoin’s market price was above $58,000. El Salvador additionally later purchased some Bitcoin at round $54,000 in November and extra BTC at $49,000 in mid-December.

On the time of writing, BTC is buying and selling at $37,159, down about 45% from its historic highs of above $68,000 recorded on Nov. 9.

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