Soon after the International Monetary Fund(IMF) pushed his government to revoke Bitcoin’s position as legal cash, Salvadoran President, Nayib Bukele made yet another bullish Bitcoin (BTC) prediction.
Due to its finite supply of only 21 million digital currencies, Bukele predicted on Twitter that Bitcoin will eventually see a “gigantic price spike.”
The president emphasized Bitcoin’s scarcity as an example, stating that the globe has “more than 50 million millionaires,” and that there is insufficient Bitcoin for every one of them to hold at least one BTC.
Bukele’s remarks come after the IMF recommended El Salvador to stop using Bitcoin as legal cash due to concerns about financial stability and consumer safety. The IMF study came after a significant drop in Bitcoin’s price, with BTC losing roughly $10,000 in value between January 20 and January 25.
El Salvador’s Bitcoin reserves have suffered significant dollar-denominated losses as a result of the recent Bitcoin crash. The Salvadoran government made its initial 200-BTC buy on Sept. 6, when BTC was trading about $52,000, as previously reported by Cointelegraph. On Oct. 27, when Bitcoin’s market price was above $58,000, the government purchased 420 BTC. El Salvador also purchased some Bitcoin in November for roughly $54,000 and more BTC in mid-December for $49,000.
BTC is currently trading at $44,038.20.