President of El Salvador talks about bitcoin crash

Salvadoran President Nayib Bukele spoke about bitcoin’s fall, advising investors not to worry about prices. According to him, the price of digital currency will rise “immeasurably” after the current bear cycle.

Bitcoin has faced declines and is trading below $20,000 for the first time since December 2020. The digital currency is trading at $18,548 this Sunday with a market capitalization of $354 billion.

Panic has spread across the cryptocurrency market, leaving investors worried about the future of digital assets.

Salvadoran President Nayib Bukele called for calm in a downturn. In a post on Twitter, President Bukele wrote:

“I see some people are worried about the price of bitcoin. My advice: stop looking at the charts and enjoy life. If you have invested in bitcoin, your investment is safe, its value will increase tremendously after the bear market. The main thing is patience. » writes Bukele.

El Salvador and bitcoin

El Salvador started buying Bitcoin in August 2020 and has already accumulated over 2,300 bitcoins as part of its treasury. His last Bitcoin purchase was in early May 2022.

The first purchase was 200 bitcoins for $10,353,812 at an average price of $51,770 per bitcoin. As of this writing, that first purchase is down 63%.

El Salvador bought more Bitcoin during a downturn. President Nayib Bukele has announced two more purchases in 2022, even as prices fall further.

The last purchase was on May 9, 2022, when El Salvador acquired 500 BTC for $15.3 million at an average cost of $30,744 per bitcoin.

In total, the country currently holds 2,300 bitcoins purchased for around $105 million and an average cost of $45,908.

The value of bitcoin investments in the Latin American country has already fallen by more than 50%. With a bitcoin price below $20,000, El Salvador’s bitcoin holdings are now worth around $44 million, down over 58%, with over $61 million in losses.

The International Monetary Fund (IMF) criticized El Salvador’s decision to accept Bitcoin as legal tender and strongly advised the country against doing so. The IMF report listed Bitcoin’s disadvantages as follows:

“Bitcoin involves major risks to financial and market integrity, financial stability, and consumer protection. It can also create contingent liabilities.

However, the country ignored IMF warnings. The country’s president is a strong bitcoin supporter who believes cryptocurrency is the future.

Additionally, Bitcoin reduces the country’s dependence on the US dollar, which is El Salvador’s only other official currency.

El Salvador’s finance minister and president have been accused of undermining the country’s financial health. However, Minister Z’el aya confidently replied:

“When I’m told that the fiscal risk for El Salvador from Bitcoin is very high, the only thing I can do is smile.”

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