El Salvador's President Bukele previously announced making Bitcoin a legal tender for the country. Unfortunately, the taxpayer-backed investment is down by around half its original value.
El Salvador's Bitcoin Investment Dropped to Around Half
The country was the first to make Bitcoin a legal tender on September 7, 2021, when the price of BTC was at $51,014.64, according to NPR. As of press time, the cryptocurrency's price on Coin Market Cap sits at just $22,351.61 after dropping 6.95% in the last 24 hours.
According to the story on Mashable, President Bukele invested taxpayer money into Bitcoin, and now, they are worth around half the initial price paid. After digging up old tweets regarding how the President "bought the dip," a thread revealed that they also have a trust fund that both BTC and USD fund.
Hahaha we’re already making a profit of the #bitcoin we just bought.
— Nayib Bukele (@nayibbukele) October 27, 2021
President Bukele Bought the Dip Again on May 9
In the thread, Bukele announced that they have already made a profit on Bitcoin after just buying. It was also revealed that their technique was to withdraw USD whenever BTC increased in price while leaving "the trust with the same total."
The tweet was posted on October 2021 when the price of Bitcoin was over $60,300. During this time, the country bought 420 BTCs, and on May 9, the President of El Salvador once again announced that they bought yet another dip.
El Salvador just bought the dip! 🇸🇻
— Nayib Bukele (@nayibbukele) May 9, 2022
500 coins at an average USD price of ~$30,744 🥳#Bitcoin
El Salvador Holds 2,301 Bitcoins at a Value of Around $53 Million
As per the more recent tweet, El Salvador bought 500 coins at the average price of $30,744, and as of press time, the country holds 2,301 Bitcoins with a value of around $53 million. The country also initially spent $105.6 million to buy its total BTCs.
The crypto market has dropped significantly from its all-time high during the last few months of 2021. While the market thought things were stabilizing, the incident with Terra LUNA's UST created more fear, uncertainty, and doubt (FUD) in the market, described by Fortune.
Read Also: Crypto.com, BlockFi Lays Off Workers Due to 'Crypto Winter'- Industry Still The Feels Effects
Crypto Expert Says Bitcoin Could Drop to Lower Prices
This resulted in a chain of events that affected other cryptocurrencies in the market, including Bitcoin. Since May 26, the cryptocurrency has been dropping down from its $46K level down to just $22K, with corporate individuals saying the price could go down further.
According to CNBC, crypto exchange Luno's vice president of corporate development and international, Vijay Ayyvar, said, "we could see much lower Bitcoin prices over the next month or two.
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Written by Urian B.
