El Salvador’s Bitcoin has fallen by $40 million

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El Salvador’s Bitcoin has fallen by $40 million

El Salvadoran's Bitcoins BTC investment is poor, with the value of the more than 2,000 units it holds falling by about $40 million. The current market realities make it harder for people to find the lowest price in more than a year due to the decline in value.

El Salvadoran spent around $105 million on its Bitcoin purchases, but the value of its holdings was around $66 million as of May 12.

In September 2021, President Nayib Bukele made Bitcoins legal tender in the country to improve its economy. El Salvadoran became the first nation to buy Bitcoins.

Since El Salvadoran bought its first coins, the value of BTC has fallen by 45%, per criptoSlate data.

President Bukele revealed that he took advantage of the recent price decline to purchase an additional 500 BTC, but the losses have not deterred the country.

The Central American country president said in a recent tweet that the rest of the world would understand that 1 BTC 1 BTC would come to a close regardless of its price performance.

Investments in volatile assets likeBitcoin have been criticized for an indebted country like El Salvador.

A Bloomberg report stated that the country s losses onBitcoin are equal to the next interest payment to bondholders due on June 15.

Carlos Acevedo, the former Central Bank Chief of the country, captured the situation the best. It is a risky investment because it is completely at the discretion of the president because it is an extremely volatile asset. He buys it on his phone, when he wants to take advantage of the dip, but he doesn't do it right because when he buys, there is always a bigger dip.

Since last year, the lack of accountability or whim purchases by President Bukele has divided his citizens and strained the country s relationship with agencies such as the International Monetary Fund IMF Talks between El Salvador and the International Monetary Fund over an extended fund facility.

US officials have expressed concern about the country s decision to adopt BTC as a legal tender, as well as concerns about the country s decision to use it as a legal tender. In February, some lawmakers proposed a bill to review how the US can protect itself against El Salvador's decision onBitcoin.