El Salvador’s Bitcoin bond to launch in March, pushing BTC price up
- El Salvador plans to issue its first Bitcoin bond between March 15 and March 20, 2022.
- The corporate adoption of Bitcoin went parabolic since the addition of BTC to MicroStrategy’s balance sheet.
- Amidst rising adoption from institutions, the Salvadoran Finance minister expects the offering to be oversubscribed by an additional $500 million.
- Analysts at FSInsight predict Bitcoin price could hit $222,000 before the end of 2022.
El Salvador has announced the launch of its Bitcoin bond next month. Salvadorans are riding the wave of institutional Bitcoin adoption, fueling a bullish outlook among investors.
Bitcoin price rally fueled by El Salvador’s bond issuance and institutional investment
El Salvador plans on issuing its first Bitcoin bond in March 2022. The Salvadoran Finance Minister, Alejandro Zelaya told a local news show that the government plans to issue the Bitcoin bond between March 15 and March 20.
Zelaya was quoted as saying:
If we really want to build this country, we have to invest in it like this.
The Salvadoran Bitcoin Bond will pay investors 6.5% per annum. $500 million raised from the bond issuance will be used for Bitcoin mining and developing renewable energy from volcanoes, another $500 million for buying more Bitcoin.
El Salvador’s government plans to issue $1 billion for the first bond and expects it to be oversubscribed by an additional $500 million. The minimum purchase is $100, and investors can directly buy without involving a broker.
The Bitcoin bond would be issued on Blockstream’s Liquid Network sidechain.
Salvador’s move to launch a Bitcoin bond is timed in accordance with the rising corporate adoption of the asset. Firms are keen on adding Bitcoin to their balance sheet; recent Wells Fargo and JP Morgan reports have affirmed a bullish outlook on BTC price.
Analysts at FSInsights recently evaluated the Bitcoin price trend and set a target of $222,000 for the end of 2022.
FXStreet analysts believe that Bitcoin price could stumble on track to $50,000.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
