Bitcoin crash breaks out in El Salvador

A further drop in the bitcoin price is bad news for Niep Bukele. The President of El Salvador thought he did something good on Friday by buying an additional 410 Bitcoin.

Bukele bought 410 Bitcoins on behalf of El Salvador at $36,585, resulting in a total purchase of $15 million. “This time I didn’t miss the bottom to buy,” he wrote on Twitter.

But that was encouraged too early, because by Saturday afternoon, the price had already fallen below $35,000.

26% hypothetical loss

Based on its own disclosures, El Salvador now has 1,801 BTC after the nine Bukele purchases since then. September 2021When Bitcoin became an official method of payment in El Salvador.

For that portfolio, the Latin American country paid out a total of $85.6 million, which drops to an average price of around $47,500. But at Saturday afternoon’s price, the total package is only $63 million.

So, on paper, El Salvador lost $22.6 million in value. This remains a limited amount for any state, but it is already a loss in percentage terms of more than 26 percent.

rating agency Moody’s He warned earlier this month that El Salvador’s bitcoin policy could harm the country’s creditworthiness. El Salvador’s adoption of Bitcoin is an absolute disaster. One of the most outspoken skeptics of digital currencies, Nouriel Roubini, one of the most outspoken skeptics of digital currencies, said on Twitter on Saturday.

Of course, the value losses are only hypothetical as long as El Salvador does not actually sell some of its bitcoins. but the Latest price drop They are mill for Bukele critics mill.