The price of Bitcoin (quotation $ BTC) has still registered a small correction in the past few hours. The report comes just days after $ BTC hit a new ATH of $ 66.973. The price correction is now seen by many as an opportunity to accumulate more $ BTC.
Nayib Bukele, the president of El Salvador, the first country in the world to make Bitcoin legal tender, is also among the many who want to buy Bitcoin on the downside. However, he feels the fix is too small and he may need a better discount to make the purchase.
Bukele's interest in Bitcoin is known around the world as he is considered the main architect of El Salvador's adoption of BTC. The small Central American nation began buying $ BTC in September of this year. They bought 700 BTC throughout September, when the biggest cryptocurrency was trading below $ 45.000. Bukele was criticized at the time as their purchase value was on the decline.
When $ BTC hit the new ATH, El Salvador's Bitcoin holding made millions in profits that are now being used to build hospitals and other national projects.
El Salvador is already reaping the benefits of adopting Bitcoin
International media continue to put El Salvador's adoption of BTC in a bad light, focusing more on the protests and less on the benefits that Bitcoin adoption has given the country. The national Chivo wallet is already used by two-thirds of Salvadorans, while Bitcoin ATMs have also been very successful receiving millions of remittances daily.
El Salvador has also invested in clean mining of Bitcoin using the abundant geothermal energy available in the country. The country has already created the infrastructure and also mined its first Bitcoin, so the adoption proved to be a big win for the struggling nation, despite everyone's skepticism.
The director of Fidelity expects further gains for Bitcoin comparing it to the gold rally of the 70s
Although Bitcoin retracements are not new, market analysts continue to believe in Bitcoin.
Fidelity's Director of Global Macros, Jurrien Timmer, predicts that the price of BTC will continue to rise based on supply and demand patterns.
Speaking to CNBC earlier last week, Timmer said that the price of BTC could reach $ 100.000 by 2023. Obviously, Timmer does not expect the price of BTC to directly jump to $ 100.000 and adds that there may be some pullbacks. . Therefore, comparing it further to the gold price rally of the 70s, he adds:
“Similar to gold during the 70s, it wouldn't surprise me to see a rally, followed by a correction. It would be very similar to previous bitcoin boom / bust cycles and it would be the most non-linear thing it can do ”.
During his CNBC interview, Timmer said: “Bitcoin is a more convex version of gold. It has increasingly scarce supply and gold does not have the network dynamics that bitcoin has, so it makes sense that bitcoin outperforms gold. Bitcoin and gold are two different players on the same team ”.
