Massive liquidations have wreaked havoc on the crypto market, hurting retail and institutional investors.
According to Bloomberg, El Salvador has also suffered a loss of more than $11 million due to its possession of at least 1,391 Bitcoin.
Nayib Bukele, the country president, has not shied away from using Twitter to express his enthusiasm for the top cryptocurrency.
Bloomberg calculated the average purchase price of each coin based on the date and hour of his tweets. Assuming that the Central American country’s BTC portfolio is still intact, this corresponds to a $71 million acquisition cost.
Bitcoin’s price is currently lying at $42,890 during intraday trade, equating to a value of $59.65 million, resulting in a loss of $11.35 million.
Economist Steve Hanke shared these sentiments, describing Bitcoin as a speculative and volatile asset. Unfortunately, as he continues to hurl El Salvadoran taxpayer money into the Bitcoin fire, Nayib Bukele has yet to realize this. As a result, El Salvador’s dollar-denominated debt is engulfed in flames.
When it came to adding more coins to El Salvador’s portfolio after Bitcoin became legal tender in September 2021, President Bukele used the “buying the dip” technique.
President Bukele recently revealed his positive expectations for the Bitcoin market, predicting that the price may approach $100,000 this year. He also predicted that Bitcoin would be a key election topic in the United States this year.
Earlier this month, El Salvador’s government said that it intends to implement Bitcoin bond issuance through a slew of new laws. The roughly 20 proposals aim to establish a framework that will simplify including securities in the crypto market.
Bitcoin holders who relocate to El Salvador will be allowed residency if these legislations pass.