Bitcoin at $100,000 this year? El Salvador’s president’s forecast
If he's correct, a move to US$100,000 from today's prices would mean a more than 100% gain for investors.
El Salvador President Nayib Bukele tweeted an optimistic forecast on Sunday that Bitcoin would reach six figures in 2022. He also predicts that two more countries will adopt the cryptocurrency as a legal tender and that it will become an electoral issue in the US elections this year.
2022 predictions on #Bitcoin:
•Will reach $100k
•2 more countries will adopt it as legal tender
•Will become a major electoral issue in US elections this year
•Bitcoin City will commence construction
•Volcano bonds will be oversubscribed
•Huge surprise at @TheBitcoinConf
— Nayib Bukele (@nayibbukele) January 2, 2022
Bitcoin now hovers above US$45,000
As of December 2021 and early January this year, Bitcoin has remained stuck in a range of between US$45,500 and US$50,700. To attack the US$100,000 price target, Bitcoin would have to break US$51,000 first.
Based on previous tweets, El Salvador may use a price pullback to buy more Bitcoin as it did in September last year.
Bitcoin is a legal tender in El Salvador
El Salvador accepted Bitcoin as legal tender in September 2021. The Central American country is the world's first to put this cryptocurrency on par with its currency — the US dollar. That makes it an important voice on Bitcoin.
Accepting Bitcoin isn't the only crypto-related financial move in the country. In November 2021, the president announced plans to issue a US$1 billion "Bitcoin Bond" with a 10-year maturity on the Liquid Network. Half of the proceeds would fund the construction of the "Bitcoin City", which is planned to have residential areas, shopping centers, restaurants and a port.
The president isn't the only proponent of the US$100,000 price target
Bitcoin heading to US$100,000 was cited in a recent Bloomberg Intelligence report. The main reasons for reaching that price target were growing adoption and diminishing supply, per the report.
However, since the Federal Reserve decided to tackle inflation in 2022, the price of Bitcoin has dropped from its US$68,000 peak. That's mostly because investors considered Bitcoin as "digital gold" and a hedge against inflation. Despite that, whether Bitcoin reaches US$100,000 this year remains to be seen.
Kliment Dukovski owns Bitcoin as of the publishing date.
Disclosure: The author owns a range of cryptocurrencies at the time of writing