El Salvador's reserves fall while Bitcoin extends its losses

El Salvador's reserves fall while Bitcoin extends its losses

el Salvador has an estimated 2,301 bitcoins, since it announced a year ago that it would recognize the world's largest cryptocurrency as a legal means of payment.

The President of El Salvador, Nayib Bukele, has made it into a habit in the past few months, "buying the dip", and often brownish on Twitter by fixing lower prices. At the time of Bukele's last Twitter update, the country's Bitcoin reserves amounted to around $ 71.4 million.

But the latest market conditions pressed the Bitcoin price even further down and pressed the stocks of El Salvador to around $ 52 million.

The sale takes place, since El Salvador continues to delay the emission of his highly expected “volcanic bonds”, which were originally supposed to be released in March 2022. The state decided to postpone the planned emission of $ 1 billion, which is to finance El Salvador's emission "Bitcoin City," said finance Minister Alejandro Zelaya after turbulence at the markets.

The bonds are largely considered one of the last hopes of the Central American nation to cover their financing needs. The International Monetary Fund (IMF) has concerned about the sustainability of El Salvadors Bitcoin experiment and will probably not approve any loans. The World Bank also refused to help the country to introduce Bitcoin with its plans when it was first announced in June 2021.

The public perception also deteriorates thanks to various by Bukele takes. Bukele acts with Bitcoin on behalf of El Salvador on his cell phone, he gave in another to "This type of behavior does not help, it really shows that he either doesn't understand or he doesn't care," said Nathalie Marshik, head of the emerging country-state bond research at Stifel Financial Corp, at the time of the tweets. "You have a massive need for financing and use your tax money for daily trade in Bitcoin? What is the strategy in it?"