El Salvador’s President says Bitcoin will see a “gigantic price increase” due to its limited supply.

Salvadoran President Nayib Bukele made yet another bullish Bitcoin (BTC) prediction soon after the International Monetary Fund had urged his government to remove Bitcoin’s status as legal tender. Bukele, in a Twitter post on Monday, predicted that Bitcoin will ultimately see a “gigantic price increase” due to its limited supply of only 21 million digital coins.

 

“A gigantic price increase is just a matter of time.”

El Salvador’s president cited Bitcoin’s scarcity case, emphasizing there are “more than 50 million millionaires” in the world, and there is not enough Bitcoin if each one of them wanted to own at least 1 BTC. “Not enough for even half of them. A gigantic price increase is just a matter of time,” Bukele tweeted. The latest Bitcoin crash caused major dollar-nominated losses to El Salvador’s Bitcoin reserves. As reported earlier, the Salvadoran government made its first 200-BTC purchase on Sept. 6, when BTC traded for around $52,000. 

 

IMF urged El Salvador to take back its bitcoin law.

Bukele’s comments came shortly after the International Monetary Fund (IMF) had urged El Salvador to end its recognition of BTC as an optional legal tender due to financial stability and consumer protection risks. The IMF’s report followed a sharp price decline, with BTC losing about $10,000 of its value in a period from Jan. 20 to Jan. 25, according to data from CoinGecko. At the time of writing, BTC is trading at $37,200, down about 45% from its historical highs of above $68,000 recorded on Nov. 9.

 

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