How much money is El Salvador losing by investing in bitcoins?

The fall of the cryptocurrency market affects its investors, without distinguishing their condition. El Salvador is seeing its invested value drop by almost 50%.


The cryptocurrency market continues to go through a recession stage and a new drop in bitcoin has caused thousands of dollars in losses to its investors.

Interestingly, in terms of people who have suffered this decline, they have been government institutions, the most popular case being that of the coffers of El Salvador .

The millions are gone

According to Bloomberg Line , the 2,301 bitcoin coins that El Salvador has have fallen in value by close to 50%.

With the average value of bitcoin at $23,000 this Monday , the decline in the value of the country’s investment is about $50 million.

El Salvador has been buying bitcoin in stages.

The Central American country is the first nation in the world to legally accept bitcoin , with support given by the head of government Nayib Bukele.

Since said standardization in the country , El Salvador has bought about 2,300 bitcoins in stages , always when the value of the cryptocurrency fell below the temporary minimum points. The problem is that these points have always been exceeded.

If the BTC were at its maximum point (over 68 thousand dollars), El Salvador would have reserves of 156 million dollars.

Why did bitcoin fall?

Last Friday, the United States Federal Reserve (Fed) confirmed the growth of 8.6% in inflation, the fastest growth in 40 years.

Economists and market analysts reportedly believed that inflation had peaked in March at 8.5% and was going to start trending lower in April and May.

Given this, investors have decided to place their money in more traditional investment mechanisms, causing falls not only in the cryptocurrency market , but also in the Stock Market.

However, the chaos generated by lender Celsus also fueled the cryptocurrency crash . Bitcoin is averaging below $23,000 per unit, its worst value in nearly two years.