El Salvador’s president faces criticism for a $18 million loss as bitcoin drops below $23,000

June 14, 2022

El Salvador's president faces criticism for a $18 million loss as bitcoin drops below $23,000

El Salvador’s president faces criticism for a $18 million loss as bitcoin drops below $23,000

Alejandro Zelaya, El Salvador’s finance minister, reportedly minimized the effect of the Bitcoin fall on the nation’s budget, according to Reuters. After El Salvador declared Bitcoin to be legal cash, its price dropped by 56%. The issue first surfaced on June 13 at the start of the Asian trading day. After the revelation of a higher-than-anticipated U.S. inflation rate, bitcoin fell. The revelation that cryptocurrency loan site Celsius has ceased accepting payments because of a liquidity issue, however, has shocked the markets. Bitcoin has reached its lowest point since June 12th after losing 25% of its value. Early on June 14 there would be a break if the $ 20,800 level was broken. But the current state of the market nevertheless causes grave alarm.

In press time, Bitcoin traded at $ 22,900, an 18-month low for the major cryptocurrency. In a press conference on the strong bitcoin sales, Zelaya said the situation posed a minimal financial risk to El Salvador. Critics of the Bitcoin process in El Salvador took the opportunity to condemn President Bogle. For example, when the latest sale began, @mercadosyaccion tweeted that the loss of $ 38 million was “easy” if it came from public money. El Salvador’s bitcoin reserves are 2,301 bitcoins with an average purchase price of $ 30,744. El Salvador has accrued a loss of US$38 million as of today, June 12, 2022, as a result of President Bukele buying 2,301 Bitcoin with tax money. Well, it’s amazing how simple it is to use someone else’s money to make “extremely speculative investments.” It’s simple. At current prices, the country has an unrealistic loss of $ 17,980,000. Concerns are growing that a further fall in the price of Bitcoin could harm the people of El Salvador.

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