According to Bukele, there isn't enough Bitcoin for every one of the world's wealthy to hold one.
Soon after the International Monetary Fund encouraged his government to revoke Bitcoin's position as legal cash, Salvadoran President Nayib Bukele issued another optimistic Bitcoin (BTC) forecast.
Bukele predicted on Twitter on Monday that Bitcoin's restricted quantity of only 21 million digital currencies would lead to a "gigantic price spike."
The president referenced Bitcoin's scarcity, 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. "Not even half of them will be able to eat." "It's only a matter of time before we see a massive price hike," Bukele remarked.
Bukele's remarks come after the International Monetary Fund (IMF) advised El Salvador to stop accepting Bitcoin as legal cash, citing concerns about financial stability and consumer safety. The IMF study came after a dramatic drop in Bitcoin's price, with BTC losing almost $10,000 in value between Jan. 20 and Jan. 25, according to CoinGecko statistics.
El Salvador's Bitcoin holdings have suffered significant dollar-denominated losses as a result of the recent Bitcoin meltdown. 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 decided to buy Bitcoin in November for roughly $54,000 and additional BTC in mid-December for $49,000.
BTC is now trading at $37,159, down approximately 45 percent from its historical highs of almost $68,000 set on November 9.