TL; DR Breakdown
- El Salvador president predicts massive Bitcoin rise
- Bukele makes a case for Bitcoin’s supply
- Bitcoin continues to decline
Over the last few weeks, the crypto market has continued to bleed heavily, seeing losses going into double digits. While some traders believe they need to stay off the market, others believe this is the investment period. This is because of the potential surge that is supposed to come after this dip. One such party that believes the price of Bitcoin could rise in the coming days is El Salvador president Nayib Bukele.
El Salvador president makes a case for Bitcoin’s supply
This latest statement is coming off the back of the recent word from the International Monetary Fund to the country. Some weeks ago, the IMF urged El Salvador to remove Bitcoin from the legal tender in the country. In the early hours of today, Bukele was on Twitter to give insights into what he believes about the coin.
According to the El Salvador president, Bitcoin’s rise is destined to happen due to its capped at 21 million supply. In his example, he mentioned that the world has more than 50 million millionaires, and the token’s total supply cannot be shared among them equally. Putting it into context, he said that 25 million millionaires could not get one Bitcoin each even if it were shared in that ratio among them.
Bitcoin continues to decline
The International Monetary Fund has been on the case of El Salvador for a while now due to Bitcoin’s status as legal tender in the country. The IMF’s recent statement was tied to the various economic risks related to Bitcoin. Its latest statement is also coming off the back of a drastic fall in the price of Bitcoin. The digital asset led the market in a massive decline after it lost $10,000 in the space of five days. El Salvador, among others who held Bitcoin in reserves, has been suffering heavily following these losses.
El Salvador entered the Bitcoin market after the country announced the purchase of 200 Bitcoin in September 2021. During this period, one Bitcoin sold for around $52,000. Over the following months, the country bought smaller amounts of Bitcoin when the asset price was around $58,000, $54,000, and $49,000. Presently, the famous digital asset is trading close to $37,500, seeing a loss of 1.4% in the last 24 hours.
