El Salvador President Neb Bukele made another bullish outlook for bitcoin (BTC) shortly after the International Monetary Fund asked his government to strip bitcoin of its legal tender status.
On Monday, Bukele took to Twitter to predict that Bitcoin will eventually experience a “significant price increase” due to the limited availability of just 21 million digital currencies.
Pointing out the disadvantage of Bitcoin, the President stated that there are “over 50 million millionaires” in the world and Bitcoin is not enough if everyone wants to own at least 1 BTC.
“Not enough for half of them,” Bukele wrote. “Massive price increases are just a matter of time.”
Bukele’s comments came shortly after the International Monetary Fund (IMF) urged El Salvador to stop recognizing bitcoin as a legal currency due to financial stability and consumer protection risks. The IMF report was published immediately after the sharp fall in Bitcoin prices: according to CoinGecko, BTC lost about $10,000 of its value from January 20 to 25.
Bitcoin 30 day price chart. Source: CoinGecko
The recent crash of Bitcoin resulted in a huge loss of Bitcoin dollar reserves in El Salvador. As Cointelegraph previously reported, the Salvadoran government made its first purchase of 200 BTC on September 6, when BTC was trading around $52,000. The government then bought 420 BTC on October 27 when the market price of bitcoin was above $58,000. El Salvador also subsequently bought some bitcoin at around $54,000 in November and more bitcoin at $49,000 in mid-December.
At the time of writing, BTC is trading at $37,159, which is almost lower. 45% off the all-time high above $68,000 on November 9th.