Bitcoin and cryptocurrency prices have begun to bounce following a major sale until January (Probably helped by some huge price forecasts).
Bitcoin prices have risen almost 10% since this time last week, while Ethereum and its major rival Solana have risen about 12%. Intensifying competition between two rival chains.. Binance’s BNB, Cardano, and XRP prices are also rebounding, but not so strong.
Now, last year, El Salvador’s president Nayib Bukele, who led the country’s radical Bitcoin adoption experiment, predicted a “huge” rise in Bitcoin prices-called it “a matter of time.”
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El Salvador’s President Nayib Bukele has emerged as one of Bitcoin’s most bullish supporters. .. .. [+]
“There are more than 50 million millionaires in the world,” Bukele said. twitter, I will give you an overview of the Bitcoin Bull Case. “Imagine when you decide that each needs to own at least one Bitcoin, but Bitcoin is 21 million. [Not] Half of them are enough. “
At the turn of the year, Bukele hastily announced a 2022 Bitcoin price forecast —Includes Bitcoin price more than doubled to $ 100,000..
The rarity of Bitcoin, where the number of new Bitcoins created gradually declines until the last Bitcoin is “mined” in more than 100 years, is often cited as the reason why Bitcoin prices continue to rise. Will be. If the demand for Bitcoin exceeds the supply, the price will theoretically be pushed up.
But last week, Wall Street giant Goldman Sachs Increased adoption of warned crypto may not be converted to higher prices It can even undermine the story of Bitcoin, Ethereum and other coins diversifying their portfolios.
Bukele has made Bitcoin price forecasts in response to a new warning from the International Monetary Fund (IMF) on the volatility of Bitcoin and cryptocurrency prices. By 2021, El Salvador had purchased over 1,000 Bitcoins and previously made Bitcoin one of the official currencies alongside the United States in September.
Extreme crypto price volatility “destabilizes” the flow of capital in emerging markets, and replacing traditional currencies with cryptocurrencies poses “immediate and serious risks,” IMF officials said. It says. Financial Times..
“Cryptography is used to withdraw money from countries that are considered unstable [by some external investors]”In some countries, it’s a big challenge for policy makers,” said Tobias Adrian, IMF’s financial counselor and head of the currency and capital markets sector.
Last week, the IMF urged El Salvador, which is seeking more than $ 1 billion in funding from the fund, to abandon Bitcoin’s testing, warned of Bitcoin’s risks and negatively impact its ability to obtain state loans. Emphasized.
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Bitcoin prices have bounced off their January lows, but are well below their highs. .. .. [+]
However, El Salvador can escape its dependence on the IMF. Mr. Buquere is a low-tax “bitcoin city powered by a domestic volcano, partially funded by Bitcoin-backed $ 1 billion government bonds and expected to be issued in just a few weeks. “It is a plan to build.
“El Salvador does not seem to need a compulsory loan from the IMF anymore by issuing innovative Bitcoin bonds,” said Marcus Sotilio, a UK-based digital asset analyst. Will be able to procure and build mining infrastructure. ” Broker GlobalBlock, wrote in a memo.
“The IMF may be afraid of Bitcoin’s growing global presence, as other Latin American countries are rumored to be adopting Bitcoin as fiat currency.”
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