The president of El Salvador wants to be reassuring in the current bear market

The Salvadoran president responds to market concerns

While Bitcoin (BTC) has undergone a sharp correction in the past few weeks to move on less than $ 20,000 for the first time in 18 months, the President of El Salvador, Nayib Bukeleis widely criticized for investing heavily in the highly speculative cryptocurrency market.

Today, the country’s Bitcoin wallet takes a multimillion-dollar loss, carrying it close to the default. But the president of the country, always very “crypto-friendly”, wants to reassure the growing concerns of investors about the future of Bitcoin.

As tensions and fears rise due to falling prices, Nayib Bukele has decided to give in advice through a tweet to bitcoin investors who may be concerned about the extended bear market:

The president advises everyone not to follow the Bitcoin rankings and to “enjoy life”. According to him, “patience is the key”. And it is true that historical data shows that after each decline in its history, the famous cryptocurrency has risen to even greater levels.

But this tweet received mixed reactions from the cryptosphere, with many users pointing out that the country had bought bitcoin at a much higher price and that the market would continue to decline. And as in any crisis, there are those who think that Bitcoin is over and those who think that Bitcoin will come back even stronger.

Some cryptocurrency enthusiasts have suggested the Salvadoran president to launch bitcoin bonds.

👉 Find our guide – How to buy Bitcoin in 2022?

El Salvador’s loss of bitcoin investments

On September 7, 2021, El Salvador became the first country in the world adopt Bitcoin as legal tender. At the time, the cryptocurrency was trading around $ 50,000.

To find out how much the loss of the small country’s wallet is, a website nayibtracker.com allows you to follow in real time the amount of Bitcoin owned by El Salvador, as well as the gains or losses of these investments.

It can therefore be seen that El Salvador has 2,301 bitcoinsfor a single cost price of $ 45,908.42 per bitcoin (while Bitcoin is trading around $ 20,300 right now). Therefore, they show the country’s investments in cryptocurrency an equity loss of 55%, or $ 58 million. It is obviously a capital loss not realized.

Despite numerous criticisms, Alejandro ZelayaEl Salvador’s finance minister dismissed claims that the country had lost more than $ 40 million a few days ago, stating:

“I’ve said it many times: an alleged loss of $ 40 million didn’t happen because we didn’t sell the bitcoins. “

Indeed, this loss is only temporary and there is no doubt that El Salvador’s investments will return to positive territory when the market recovers.

👉 On the same topic – In El Salvador, the government’s Bitcoin (BTC) wallet struggles to seduce

Source: Cointelegraph

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About the author: Timoteo Bernini

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Passionate about the world of investments, cryptocurrencies have attracted my attention for some years. Having a great interest in the fields of new technologies and Web 3, that’s why I naturally wanted to write articles about Cryptoast, in order to contribute to the democratization of this universe in society.
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