El Salvador president predicts ‘gigantic price increase’ for BTC

Bitcoin fell to less than half its all-time price high in January 2022 (Getty Images/iStockphoto)

January 2022 has been the worst month for bitcoin since the pandemic-induced panic selling of March 2020, however the price is showing strong signs of recovery.

After falling from above $47,000 to below $34,000 in the first three weeks of the year, the price of BTC has since rebounded back above $37,000.

The broader crypto market has followed a similar price trajectory, with Ethereum (ETH), Binance Coin (BNB), Solana (SOL) and Dogecoin (DOGE) all experiencing heavy losses at the start of the month before bouncing back in recent days.

On-chain trends have offered some hope to investors that this market reversal may continue, with data from analytics firm Glassnode revealing that long-term holders are refusing to sell. Bitcoin exchange reserves are also falling, suggesting a potential supply squeeze that could force the price up in the short term.

You can follow all the latest cryptocurrency news, analysis and expert price predictions right here.

Bitcoin price to see ‘gigantic’ increase, El Salvador president predicts

11:48 , Anthony Cuthbertson

Bitcoin’s plummeting price in January means El Salvador’s BTC reserves are now worth considerably less in US dollar terms than they were when they bought them.

Despite this, El Salvador President Nayib Bukele is confident that the latest mini price recovery is just the start of something significant for the cryptocurrency.

He cites the inbuilt scarcity of bitcoin, which means only 21 million BTC will ever exist. It means there is not enough bitcoin for even half the world’s millionaires to own a whole coin.

Hello and welcome…

11:31 , Anthony Cuthbertson

to The Independent’s live coverage of the crypto market. It’s been a rough start to 2022 but the dreaded dip below $30,000 has so far failed to materialise. As the worst month since March 2020 comes to a close, we’ll be bringing you all the latest news, analysis and expert price predictions for bitcoin (BTC), Ethereum (ETH) and other leading cryptocurrencies.

Bitcoin suffered significant losses at the start of 2022 but its price has since shown signs of recovery (Getty Images)

Bitcoin suffered significant losses at the start of 2022 but its price has since shown signs of recovery (Getty Images)