After an incredible, although volatile, 2021, all eyes are now on trying to figure out how Bitcoin will behave this year. During the past two years, Bitcoin has on average performed well, making investors and industry experts hopeful that 2022 would mark another major milestone in the journey of the world’s oldest and largest cryptocurrency by market capitalization. Many appear optimistic that Bitcoin will surpass the long-awaited $100,000 benchmark this year. But extreme volatility is a key factor that most investors would be keeping a close tab on.
Among the hopefuls is El Salvador President Nayib Bukele, who has released on Twitter a set of 5 predictions on Bitcoin’s performance this year. His predictions are:
– Bitcoin will touch $100,000.
– Another two countries will adopt it as legal tender.
– Bitcoin will become a major electoral issue in US elections this year
– Bitcoin City will commence construction
– Volcano bonds will be oversubscribed. President Bukele’s government wants to issue $1 billion worth of a “Bitcoin Bond” with a 10-year maturity. Half of the money raised will be used to purchase Bitcoins, and the rest will be used to fund the construction of the ”Bitcoin City” along the Gulf of Fonseca near a volcano.
– Huge surprise at the Bitcoin Conference, the largest conference focused on Bitcoin slated from April 6–9 in Miami, Florida.
It’s not surprising that President Bukele is so bullish on Bitcoin, since El Salvador became the first country to have adopted Bitcoin as a legal tender besides the US dollar in September last year. Going a step further, Bukele announced the Bitcoin bond in November.
Like Bukele, many experts too think Bitcoin may surpass the $100,000 milestone by the first quarter. However, some experts are wary about reposing too much faith in the crypto coin, cautioning that even if it reaches that mark it is likely to correct its pricing. For instance, Bitcoin touched an all-time high of $68,789 in November last year, but the value came down to under $46,000 by December 31, according to CoinMarketCap.