The government has spent a total of more than $100 million on 2,301 Bitcoin coins. Its value does not seem to meet the forecast expectations for this year.
The projection of the Bitcoin may be worth more than $100,000 this year doesn’t seem to fit; right now the value of the coin is around $30,744.
Despite this, the President Nayib Bukele has just announced the purchase of 500 Bitcoin worth $30,744 each. In other words, the most recent government purchase involves spending more than $15 million of public funds.
As is already known, Bukele has been characterized by buying when the currency has a low value. However, what happens when it goes up? Are there really profits?
SEE: Bitcoin price crashes and falls to $32,000, the lowest in 2022
Since November 2021, Bitcoin has been losing value. In other words, El Salvador has not gone six months without the cryptocurrency exceeding $60,000 or approaching $100,000. And apparently Bukele has been clear regarding it, since he has not made a purchase of Bitcoin coins since January of this year, when he spent almost $ 15 million in 410 coins.
Until now, the government has spent $110 million on some 2,301 Bitcoin coins. And your profit or loss from the nine purchases you’ve made since the Bitcoin Law came into effect is under lock and key.
Why has Bitcoin lost value?
The United States Federal Reserve (FED) announced last week new increases in interest rates to control inflation (increase in the prices of goods and services).
In this context, Bitcoin was one of the digital assets that had the greatest negative impact, losing up to 11% of its value in less than 24 hours.
Some media specialized in cryptoactive issues said that the reason for the fall might be related to the fact that Bitcoin investors decided to sell their coins out of fear that the value would fall. Back then it was around $35,600. As of May 9, it dropped to $30,744.
“Bukele has lost money on every Bitcoin purchase he made,” says media
While some sell, others buy.
However, the level of demand has not yet been sufficient to reverse the downward movement, which is why its price might continue to fall in the coming days, according to specialists.