President Nayib Bukele of El Salvador is attempting to calm the fears of his people following the current decline in the value of Bitcoin and other cryptocurrencies.
The price of BTC had a dramatic decline last week, going below $18,000 for the first time since 2020. As of the time of writing, Bitcoin was trading at $20,545, a 23 percent decrease over the previous week.
El Salvador’s Bitcoin holdings have been burdened by the prolonged bear market. However, Bukele is attempting to calm the tense crypto community following yet another string of significant losses.
Bukele took to social media to reassure Bitcoin investors that things may not be as bad as they appear and to offer advise to those who are concerned about the declining prices on the cryptocurrency market.
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I see that some people are worried or anxious about the #Bitcoin market price.
My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market.
Patience is the key.
— Nayib Bukele (@nayibbukele) June 19, 2022
Bukele Tries To Ease His People’s Paranoia
“I see that some people are worried about Bitcoin’s market price,” Bukele wrote on his Twitter account late Saturday. Bukele’s advice to his constituents is to “stop looking at the graph and enjoy life.”
The crypto-loving president said that “If you invested in #BTC your investment is safe and its value will immensely grow after the bear market.”
El Salvador became the first country in the world to adopt Bitcoin as legal tender in September 2021, under the leadership of Bukele, despite complaints from the International Monetary Fund.
Since then, his administration has invested more than $100 million in taxpayer funds to purchase at least 2,300 BTC units, at a price of approximately $51,000 each unit.
Has El Salvador Lost Big On Bitcoin?
According to the tracking site nayibtracker.com, the Bukele administration has spent about $105 million on the world’s most popular crypto asset, paying an average of almost $46,000 per coin.
The current value of El Salvador’s 2,300 BTC holdings is $46 million, representing a loss of 56.5% since the acquisition price of $105.6 million. The average cost per BTC in US dollars is roughly $45,908, more than double its current price.
BTC total market cap at $392 billion on the daily chart | Source: TradingView.com
The ongoing crypto winter has generated concerns that the central American nation acquired the majority of its crypto assets at exorbitantly high prices, resulting in negative holdings.
Some Bitcoin skeptics anticipate that the BTC price will continue to fall in tandem with the current market crisis, although on-chain measures have signaled that a trend reversal may be imminent.
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El Salvador’s Minister of Finance, Alejandro Zelaya, has likewise dismissed worries that a sharp decrease in Bitcoin’s value could harm the country’s budgetary health.
El Salvador had incorporated Bitcoin bonds in its Bitcoin ambitions. These bonds were announced in 2021, but the nation has not yet issued them because of the protracted bear market.
Featured image from Reuters, chart from TradingView.com