El Salvador’s BTC reserves takes a hit

The value of El Salvador’s 2,301 Bitcoin (BTC) purchase has dropped by $37m, its lowest point since December 2020.

A total of $103m has been spent by President Nayib Bukele on BTC, but now during the current crash of the coin, the Latin American country’s holdings are worth an estimated $66m, according to data from Bloomberg,

Still unfazed by any drop in BTC, Bukele, an avid supporter of the coin, announced on May 9 the purchase of another 500 BTC, taking to Twitter to explain he was “buying the dip”.

However, the purchase he made has dropped significantly from $15.3m to around $14.1m since the BTC crash.

The drop came after El Salvador decided to make BTC a legal tender on September 7, 2021. In the same month, the president authorised the purchase of 150 BTC with a further 420 only one month later.

Bukele has already come under fire for his faith and trust in BTC, with warnings from US officials and the banking sector that the country could fall into an economic crash.

The International Monetary Fund has warned El Salvador to forego its plans with BTC, disagreeing with Bukele’s views and urging him to remove BTC as its legal tender.

“Crypto-assets can pose significant risks and effective regulatory measures are very important when dealing with them”, it said.

However, amid such speculation, Bukele has not continued to slow down his plans for a “Bitcoin City”.

BTC has taken a plummet since November 2021, which saw the coin reach its all-time high of $68,789. The coin has lost 58.89% of its value, trading at the time of writing at $28,404.66, according to data from CoinMarketCap.

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Updated: 05/13/2022 — 11:00