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El Salvador’s President Bukele Faces Challenges as Bitcoin Investment Shows Decline

El Salvador

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TL;DR

  • President Bukele sees an $8 million loss on his Bitcoin investment, dropping by 6.69%.
  • NayibTracker shows only the latest three of 12 Bitcoin rounds are profitable, questioning El Salvador’s daily additions to its balance sheet.
  • Bukele’s declining crypto holdings raise doubts about the economic impact for El Salvador and global views on cryptocurrencies.

President Nayib Bukele of El Salvador, once celebrated for his bold embrace of Bitcoin (BTC) and commitment to adding one Bitcoin daily to the country’s balance sheet, now finds himself grappling with a significant decline in his cryptocurrency investment.

 As per the NayibTracker, a website monitoring Bukele’s Bitcoin acquisitions, the president’s foray into the digital asset has resulted in a loss of over $8 million.

According to NayibTracker, President Bukele’s Bitcoin holdings stand at 3,124 BTC, with an average dollar cost of $40,496 per coin. Despite his initial commitment of $126 million, the current value of his holdings hovers around $118 million, reflecting a 6.69% decline. Notably, all the reported BTC acquisitions were made below the asset’s all-time high of $69,044 in November 2021.

Bukele’s costliest batch, consisting of 420 coins purchased at $60,345 each in October 2021, has independently incurred a loss of $9,354,937. Meanwhile, his latest tracked purchase of 372 bitcoins at $9.68 million has yielded a nearly 50% return on investment, with a profit of $4,476,768. Of the 12 tracked investment rounds, only the most recent three are currently profitable, while the remaining nine rounds show substantial double-digit percentage losses.

Navigating Bitcoin’s volatility

The president’s venture into the volatile world of cryptocurrencies has been closely monitored by NayibTracker, relying on Bukele’s posts on various platforms to estimate his Bitcoin acquisitions. With the challenge of obtaining official government figures, this independent tracking mechanism provides insights into the president’s crypto investment journey.

It’s important to highlight that all of Bukele’s reported BTC acquisitions were strategically timed, occurring below the asset’s peak value in November 2021. Despite this tactical approach, the overall trend indicates a decline in the value of the investment.

Strategic investment moves

President Bukele’s Bitcoin investment strategy has showcased a mix of gains and losses. While his early acquisitions during the 2021 bull market faced depreciation, his most recent purchase has proven to be a profitable move, demonstrating the unpredictable nature of the cryptocurrency market.

The commitment to adding one Bitcoin daily to El Salvador’s balance sheet, a move hailed by crypto enthusiasts globally, now faces scrutiny as the overall value of the country’s cryptocurrency holdings experiences a downturn. This development prompts questions about the sustainability and long-term viability of a nation relying on daily Bitcoin acquisitions.

Market observations and economic implications

As Bitcoin continues to exhibit price volatility, the decline in President Bukele’s Bitcoin investment raises broader questions about the economic implications for El Salvador. The cryptocurrency, once lauded for its potential as a decentralized financial system, has faced regulatory challenges globally.

The specific impact of this decline on El Salvador’s economic landscape remains to be seen. Analysts are closely watching how the government will navigate these challenges and whether there will be adjustments to its cryptocurrency investment strategy.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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