Source : zycrypto.com
The global crypto market has dropped to $1.67 trillion following a downturn affecting bitcoin and the rest of the crypto assets. Although the downtrend is not over yet, bitcoin evangelists remain optimistic about the future.
El Salvador president Nayib Bukele recently took to Twitter to explain why the flagship cryptocurrency is due for a “gigantic price increase”. Bukele noted that the world has over 50 million millionaires while there are only 21 million Bitcoins. If all the millionaires decided to each own at least one bitcoin, there would not be enough coins for all of them. This would subsequently trigger a parabolic price surge.
Bukele’s bitcoin venture has been mired in controversy in recent weeks and months. The IMF, for instance, is convinced that the adoption of the benchmark cryptocurrency is a big problem for El Salvador as it “entails large risks for financial and market integrity, financial stability, and consumer protection.” In its latest warning, the IMF once again asked the Central American nation to drop bitcoin as legal tender.
But going by the recent tweet from Bukele, it’s clear he has no intentions of giving up on his grand bitcoin experiment despite the repeated warnings from the IMF and other parties.
Notably, Bukele has motivated other nations to mull adopting bitcoin as their official currency. As ZyCrypto covered earlier, Arizona has also put forward a bill that seeks to make bitcoin legal tender within the state. Though this is not expected to be easy, crypto pundits claim that it would be a huge deal for the top cryptocurrency if the bill succeeds. This is because Arizona has the same population as El Salvador but it has over 10X more the gross domestic product (GDP). Moreover, bitcoin becoming legal tender in a US state would be a watershed moment.
Is The Bitcoin Rally Over — Or Just Beginning?
Bitcoin posted a tremendous rally in 2021 with its price peaking at $69K last November. But the bull run has tapered off and the cryptocurrency recently took a sharp dive in the wake of a wild rollercoaster ride in the traditional financial markets.
BTC is trading at around $37,167.20 at the moment. Yet, veteran trader Peter Brandt has suggested that this could be the perfect time to buy discount bitcoin.
Brandt observed that the bulls who wore laser eyes back in March/April and forecast a moonshot for BTC are now predicting that the $30K level will be breached. This is why he believes the cryptocurrency is poised to go higher. Buying when there is blood in the streets is a well-known strategy of contrarian investing.
However, trader and podcast host Scott Melker maintains he will not be turning bullish on sliding BTC until it sets a weekly close above the $39,600 mark.