El Salvador has suffered a huge loss in its bitcoin holdings. With the price of the world’s number one digital currency by market cap now trading in the $30,000 range (at one point, it was trading in the $29,000 range), it appears that the asset is facing a number of hurdles that no currency has ever encountered. has. could have predicted.
El Salvador buys more BTC
At the time of writing, El Salvador’s bitcoin holdings are down by around 28%, but that means nothing for the country or its BTC-loving chairman Nayib Bukele, who has used this opportunity to buy more assets. .
With the cryptocurrency plunging to new lows in recent weeks, it appears that sentiment has shifted from fear to excitement over the potentially soaring wallets. Bukele is taking the latter view and has now added an additional 500 units of bitcoin to his country’s balance sheet. Some might say it’s risky, but the president has made it clear to everyone how he feels about Bitcoin and how much he admires it.
Bukele took to social media to make the following announcement:
El Salvador just bought the dip!
El Salvador became the first country to declare bitcoin legal tender in September last year. The move was started as a means of moving the country away from the US dollar, on which it had long depended. The journey was difficult in the sense that El Salvador faced a lot of division and stubbornness from external agencies that refused to recognize the measure as valid.
For example, the World Bank made it clear that it would not provide any assistance to El Salvador, as Bitcoin was highly speculative and volatile. With the asset vulnerable to price changes, the organization felt the nation was making a mistake in declaring Bitcoin as real money and refused to offer help.
This did not discourage Bukele. He started a trend that appears to be gaining traction in other areas that have long been subject to financial corruption. The Central African Republic, for example, recently became the second country to declare BTC legal, clearly following in the footsteps of its Latin American counterpart.
It probably won’t end
In addition to the World Bank, El Salvador has also faced opposition from agencies such as the International Monetary Fund (IMF), which has all but fallen to its knees not long ago and begged El Salvador and Bukele to give up bitcoin altogether and turn their backs. in the digital currency that so many people have come to trust and love.
Bukele naturally rejected his proposal and took to Twitter to mock the agency, making it clear to everyone once and for all that the partnership between El Salvador and BTC is here to stay.