January 27, 2023

The President of El Salvador, Nayib Bukele, the self-proclaimed Bitcoin President who helped Bitcoin gain legal tender status in the Latin American nation, addressed the rising concerns of investors as BTC began trading under $18,000 for the first time since November 2020.

Recall that El Salvador introduced Bitcoin as legal tender on September 7, 2021, when its market price was around $50,000.

Ever since, Bukele’s government has made significant returns on their initial BTC investments as Bitcoin rallied to its all-time high of approximately $69,000, which was redirected to the country’s various infrastructure development initiatives.

What Bukele is saying

However, as tensions rise amid falling BTC prices, Bukele decided to share advice for fellow Bitcoin investors that may be concerned about the prolonged bear market.

“I see that some people are worried or anxious about the #Bitcoin market price. My advice: stop looking at the graph and enjoy life,” he tweeted.

He reassured investors about an inevitable comeback, stating “If you invested in #BTC your investment is safe and its value will immensely grow after the bear market. Patience is the key.”

What you should know

  • This comment by the President comes after Bloomberg released an article stating that the Latin American nation has lost almost $56 million since it made Bitcoin a legal tender in the nation. The article stated that El Salvador lost the money by “gambling on the digital asset,” on stated it got its figure by its own estimates.
  • The article further stated that “That may not sound like much, but for a financially troubled country like El Salvador, every bit counts.”
  • The advice by Bukele received mixed reactions from the community as many pointed out the fact that El Salvador procured most of its BTC at a much higher price than the current market value.
  • While critics expect BTC and other cryptocurrencies to continue on the downward trend, on-chain analytics signal the oncoming of Bitcoin’s reversal back to its former glory.
  • Some of the popular suggestions to Bukele from the crypto community amid the bear market include launching the Bitcoin Bonds.

As the world keeps track of El Salvador’s Bitcoin economy, Alejandro Zelaya, the country’s Minister of Finance  dismissed allegations about the country losing over $40 million, stating, “I have said it repeatedly: A supposed loss of 40 million dollars has not occurred because we have not sold the coins.”

Also, in response to a journalist’s question about El Salvador’s reaction to Bitcoin’s selloff, Zelaya responded by saying that “There is a clear criticism of Bitcoin as such, not of El Salvador’s strategy.”

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