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El Salvador’s president urges Bitcoiners to be patient

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El Salvador
El Salvador

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Bitcoin’s price made a sharp downtrend last week, with prices falling below $18000 for the first time since 2020. The president of El Salvador, Nayib Bukele, took to Twitter to share advice with Bitcoin investors concerned about the falling prices.

El Salvador’s president urges Bitcoin investors to be patient

El Salvador adopted Bitcoin as legal tender in September last year, becoming the first country to do so. The country’s Bitcoin law was passed when Bitcoin’s price was hovering around $50,000. The country saw notable returns when BTC reached an all-time high of $69,000 in November.

The ongoing bear market has put pressure on El Salvador’s Bitcoin holdings. However, Bukele has addressed the concerning trend in Bitcoin’s price and even shared advice with fellow Bitcoin investors.

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“My advice: stop looking at the graph and enjoy life. If you invested in [Bitcoin] your investment is safe, and its value will immensely grow after the bear market,” Bukele said. He also reassured investors they would realize returns if they exercised patience.

El Salvador’s Bitcoin bond sin losses

The ongoing bear market has triggered concern that El Salvador bought most of its Bitcoin at extremely high prices, and its holdings were in losses. Some critics expect the price to continue with the downtrend, but on-chain metrics have hinted that a trend reversal could be on the way.

El Salvador’s Bitcoin plans had included Bitcoin bonds. These bonds were announced last year, but the country is yet to launch them amid the ongoing bear market. Some Bitcoin investors have called upon the launch of these bonds, saying they would aid the market recovery.

The Minister of Finance in El Salvador, Alejandro Zelaya, has dismissed claims that the country is making losses from its Bitcoin holdings. “A supposed loss of 40 million dollars has not occurred because we have not sold the coins,” Zelaya said.

When El Salvador passed the Bitcoin law last year, it was criticized by some of the world’s largest financial institutions, such as the World Bank and the International Monetary Fund (IMF). The institutions said that Bitcoin’s volatility posed a risk to El Salvador’s financial sector. The two institutions shared similar warnings after the Central African Republic adopted Bitcoin as legal tender.

Zelaya recently responded to the ongoing criticism of the country’s Bitcoin law amid the sharp dip. Zelaya noted that there was definitely a clear criticism about Bitcoin in general, but not about El Salvador’s strategy.

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