The new President of Argentina, Javier Milei, faces the daunting task of reviving the struggling economy and tackling hyperinflation. As a macroeconomics professor with a strong background in growth economics, Milei is expected to improve the country’s GDP, reduce national debt, and maintain his popularity as he serves his first term as president.

President Milei has already made some changes by signing 13 decrees, mainly focused on restructuring the cabinet and reducing the number of ministries. However, he has yet to address the issue of the Central Bank, which was a key part of his economic reform plans.

Meanwhile, the Central Bank is limiting access to dollars at the official exchange rate until President Milei announces his first measures to combat inflation. This has created uncertainty, as the official exchange rate is significantly lower than the rate in the liberal markets.

During his campaign, President Milei gained popularity by suggesting that Bitcoin could be used to fight inflation. Bitcoin has a low annual inflation rate and has been performing well compared to traditional investment products. Argentina can look to El Salvador as an example, as the country has seen positive results from its Bitcoin adoption plan.

Whether President Milei chooses to adopt Bitcoin as legal tender or not, economists believe he will face challenges in negotiating the country’s international sovereign debt, which has been defaulted on multiple times.

In terms of Bitcoin price action, it has been on an upward trend despite regulatory crackdowns. However, there is increased selling pressure from miners and short-term holders, which could lead to a drop in price and potentially benefit alternative cryptocurrencies in the coming weeks.