IMF urges El Salvador to stop BTC as legal tender, upcoming FOMC statement and ARK predicts $1M per BTC

IMF Urges El Salvador to Eliminate Bitcoin as Legal Tender

The International Monetary Fund (IMF) urged El Salvador on Tuesday to “eliminate the quality of legal tender” of Bitcoin. They also express their concern about the issuance of cryptocurrency-backed bonds that the country’s government plans to do Central American.

Through a statement, the international credit organization announced that the Executive Board had concluded the Article IV consultation with El Salvador on January 24. During the annual consultation, the strategy applied by the Nayib Bukele government to address the pandemic was analyzed, as well as the implementation of Bitcoin as a payment instrument.

President Bukele leaded the adoption of BTC as a payment currency in the country. He replied with a meme.

FOMC statement key for short term crypto market

Today, the Federal Open Market Committee (FOMC) will share their statements about their monetary policy, economic projections and rate decisions.

In the past week, stocks and crypto assets collapsed primarily due to uncertainty over the U.S. Federal Reserve’s plan to raise interest rates in the coming months. Bitcoin price dumped to $33.000, losing more than 18% in a week.

This fragility on the financial markets might be a reason for the Fed to postpone their plans to stop QE and start QT, while raising interest rates. On the other hand, inflation rose to 7% last month, which makes it almost impossible to continue the debasement of money through QE.

ARK Invest expects price to go to $1m in 2030

ARK Invest, the brainchild of savvy investor Cathie Wood, has had a rough go over the past few months. The flagship fund ARKK is down nearly 60% from it’s record high last year, however Wood and her team are still bullish on bitcoin.

One of their analysts tweets showcases how a single BTC unit could hit $1 million in value, with a couple prime assumptions:

They divide Bitcoin as an asset class into different segments, like remittance network, corporate and nation-state treasury, digital gold et cetera. All things concluded, they expect that a lot of money will flow into Bitcoin, which will cause the price to exceed $1 million by 2030.

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