The President of El Salvador reassures the Bitcoin community
The President of El Salvador reassures the Bitcoin community

The President of El Salvador reassures the Bitcoin community

By Eliano Martellucci - 20 Jun 2022

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Nayib Bukele, famous Bitcoin supporter and President of El Salvador, wants to reassure investors during this prolonged bearish phase. 

The fall in the price of Bitcoin does not worry the President of El Salvador

El Salvador’s exposure to Bitcoin is very high indeed and the collapse of its value is generating panic among the community

On Saturday 18 June, BTC broke the $20,000 support, a level that represents a very critical psychological threshold for investors. 

For many analysts, this can only mean the beginning of the collapse, which could turn into one of the most catastrophic bearish phases ever.

However, the President of El Salvador does not appear worried at all. On the contrary, a hint of irony can also be seen in his tweet:

It is nothing new that losing millions of dollars in a few days generates anxiety and concern. But Nayib Bukele, from the height of his immense knowledge, recommends staying calm:

“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”.

Responses to Nayib Bukele‘s tweet

The President’s comment generated divergent reactions among the community: there are those who remain optimistic, seeing an opportunity, and those who turn their noses up at these “recommendations” seemingly devoid of logical sense

The first response is that of Alistair Milne, who sees this as a good time to launch the long-awaited Bitcoin bonds:

The second is that of the famous Peter Schiff:

His comment, which appears to be driven more by a logical and rational sense, certainly makes one reflect on what has been happening in the markets over the past period. 

The complicated relationship between the country of Nayib Bukele and Bitcoin

Citizens are beginning to fear what the consequences of a further market crash might be, driven primarily by strong negative returns on Bitcoin. Any investor with a modicum of basic knowledge knows that a lack of diversification is always a big mistake in risk management. 

Some might think that rather than advice for investors, Nayib Bukele’s tweet might be a response to the fear that lurks among Salvadorans.

El Salvador made Bitcoin legal tender on 7 September 2021, when it was worth $50,000. A few months later its value touched the ATH of $69,000, generating immense confidence in the country’s choice. 

This confidence then began to wane after the last purchase of 500 BTC last May. The price was around $30,000 and the transaction, which only increased exposure to Bitcoin, was signed with the famous “Buy the dip“.

El Salvador is currently at a loss of around $40 million, but Alejandro Zelaya, the country’s Finance Minister, denied these allegations, stating:

“I have said it repeatedly: A supposed loss of 40 million dollars has not occurred because we have not sold the coins”.

Based on this response, it is arguable that he is right. Indeed, the loss has not yet occurred, but it certainly puts a strain on the overall health of the country’s economy

Eliano Martellucci

Eliano has a bachelor's degree in Economics and Business Administration and is about to complete his master's studies in Finance at the University of Trento (UNITN). He got hooked on the crypto and blockchain world during the summer of 2017 and has not left it since then. He currently works as editor & SEO specialist at Cryptonomist, writes articles and invests, both in Blue Chip and early stage assets. Furthermore, he is working on his latest thesis project entitled: "A Study on crypto market Sentiment Analysis through Machine Learning algorithms in python."

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