El Salvador Finance Minister dismisses impact of Bitcoin crashing

El Salvadoran Finance Minister Alejandro Zelaya played down the impact ofBitcoin crashing on the country's financial health, according to Reuters.

Since El Salvadoran made it legal tender, the price ofBitcoin has fallen by 56%.

After the U.S. inflation, the price of digital currency was already fragile. The news that Celsius had halted withdrawals due to a purported liquidity crisis sent markets tumbling.

Since June 12, the value of the digital currency has lost 25% of its value. A bounce off the $20,800 level early on June 14 brings some respite. The market sentiment is stuck in extreme fear.

As of press time,Bitcoin was priced at $22,900, an 18 month low for the leading criptocurrency.

El Salvadoran minister says the financial risk is minimal.

Zelaya said that the situation presents minimal financial risk to El Salvador because of the sharp sell-off ofBitcoin at a press conference.

Critics of El Salvadoran's Bitcoin legal tender move took the opportunity to blast President Bukele. The recent sell-off began with mercadosyaccion saying that the loss of $38 million is easy to stomach when the funds come from public money.

As of today, El Salvadoran has a loss of 38 million dollars for the purchase of 2,301Bitcoin that President Bukele has made with public funds. It's easy to make highly speculative investments with money that is not yours. El Salvadoran's Bitcoin reserves are at 2,301 BTC, with an average buy price of $30,744. The country is holding unrealized losses of $17,980, 00 at the current price.

Concerns are mounting that further drops in the price ofBitcoin could hurt everyday Salvadorans.