As tensions rise over falling Bitcoin prices, President Nayib Bukele decided to share advice for BTC investors who may be worried about the prolonged bear market.
El Salvador introduced BTC as legal tender on September 7, 2021, when its market price was around $50,000. Since then, the Bukele government made significant profits from its initial investments in BTC when the price of Bitcoin reached its all-time high of $69,000, with profits redirected to the country’s various infrastructure development initiatives.
However, as tensions rise amid falling BTC prices, Bukele decided to share advice for fellow Bitcoin investors who may be worried about the prolonged bear market.
Bukele in regards to BTC
Nayib Bukele, the president who helped get Bitcoin (BTC) legal tender status in El Salvador, addressed growing investor concerns as the price of BTC began trading below $20,000 for the first time in 18 months.
On Twitter, Bukele posted that, “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.”
Reactions to Bukele’s Advice
Bukele’s advice caused mixed reactions from the community, with many pointing to the fact that El Salvador acquired most of its BTC at a much higher price than current market value. While critics expect BTC and other cryptocurrencies to continue the downward trend, on-chain analysis points to the price of Bitcoin returning to its former glory.
Some of the popular suggestions to Bukele from the cryptocurrency community in the midst of the bear market include the launch of Bitcoin Bonuses, as noted via Twitter: “If I might make a humble suggestion. Great time to launch your #Bitcoin bonds.”
As the world tracks down El Salvador’s Bitcoin Economy, Alejandro Zelaya, El Salvador’s Minister of Finance, dismissed the accusations of the country losing more than $40 million, stating that, “I have said it repeatedly: An alleged $40 million loss has not occurred because we have not sold the coins.”
In response to a journalist’s question about El Salvador’s reaction to the sharp drop in the price of Bitcoin, Zelaya responded by saying that “There is a clear criticism of Bitcoin as such, not of El Salvador’s strategy.”
Zelaya also dismissed assumptions about high fiscal risk as humorous and ignorant, while calling the risk “extremely minimal.”
I should be noted that El Salvador owns 2,301 Bitcoins, which is equivalent to about USD 50 million. In fiat equivalent, that’s less than half the money the nation has invested in Bitcoin through its purchases in October 2021 and May 2022, when BTC was worth $30,700.
Like the cryptocurrency market in general, BTC has been declining from its all-time high in November 2021 (around $69,000) with the downward trend accelerating over the past month and a half after a series of incidents such as the crash of Terra and the Celsius fiasco, as well as the increase in world inflation.
By Audy Castaneda
