News

El Salvador’s Bitcoin Bet Down 50%, Here’s What The FinMin Thinks

El Salvador, the first country to nationally adopt Bitcoin, faces a loss of about $40 million on its investments in the token. 
Published by
El Salvador’s Bitcoin Bet Down 50%, Here’s What The FinMin Thinks

El Salvador, the first country to nationally adopt Bitcoin, faces a loss of about $40 million on its investments in the token. 

But country’s Finance Minister, Alejandro Zelaya,  does not think this is something to worry about.

In a recent press conference, Zelaya said that $40 million “does not even represent 0.5% of our national general budget,” Reuters said in a report.   

According to the minister, the drop does not create any fiscal risk for El Salvador.

Bitcoin has plummeted by nearly 30% in the past 48 hours, and faces further weakness due to highly leveraged traders in the market. The token is trading around its lowest levels since late-2020.

Advertisement

El Salvador’s Bitcoin bet slumps 50%

El Salvador is the world’s first country to make cryptocurrency legal. President Nayyib Bukele has personally announced Bitcoin purchases by the country on his Twitter handle. 

Since El Salvador legalized Bitcoin in September 2021, the token has plummeted by over 60%. El Salvador has consistently purchased Bitcoin since then, and reportedly holds about 2,301 tokens. 

Those tokens were purchased at an average price of $45,171, at a total value of $103 million. Bitcoin is trading at $22,000 as of Tuesday, valuing El Salvador’s holdings at about $50 million.

Advertisement

Market volatility has already hit planned bond issuance

But while Finance Minister Zelaya brushed off the fiscal risks from digital assets, the country has still faced some disruptions from volatility in the market. 

El Salvador had earlier this year  postponed a planned Bitcoin bond issuance worth $1 billion, citing unfavorable market conditions. 

The bonds, which were set to be used to fund a mining operation using volcanic energy, are now expected to be issued in September 2022.

The country also planned to use the Bitcoin bonds in order to clear its sovereign debts.

But the International Monetary Fund and other authorities have advised El Salvador to rethink its decision over using Bitcoin as legal tender. 

Advertisement

Share
Tanvi Singh

Tanvi is a journalism graduate from Delhi university. She has a keen interest in finance. As a newbie in the journalism world, Tanvi is learning and exploring the field. She plans to be an anchor in the upcoming years. In her free time, you can find her exploring nature & grooving in music and books. She can be reached at tanvi@coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Robinhood Lists HYPE As Hyperliquid Flips Aster, Lighter In Perp DEX Volume

Crypto exchange Robinhood has listed Hyperliquid's native token HYPE for its U.S. clients. This comes…

October 23, 2025
  • News

Expert Warns More Crypto Bloodbath Ahead of CPI Data Tomorrow

The U.S. Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) data…

October 23, 2025
  • Bitcoin News
  • News

US President Promises Deal With China on Everything As ‘Trump Insider’ Begins To Close Bitcoin Shorts- Is A BTC Recovery Ahead?

The “Trump insider whale” has begun closing its Bitcoin short positions just as the U.S.…

October 23, 2025
  • News

Just-In: Changpeng “CZ” Zhao Counters Peter Schiff, Says “Tokenizing Gold Is Not On-Chain Gold”

Binance founder Changpeng "CZ" Zhao debunked economist Peter Schiff's views on tokenizing gold. CZ claimed…

October 23, 2025
  • News

$240 Million Hacked Crypto Exchange WazirX Reopens Deposits But Faces Community Backlash

Indian crypto exchange WazirX has taken key steps toward resuming full operations, with INR and…

October 23, 2025
  • News

Expert Flags Pi Network Team as Source of Selling Pressure After Reported 1.2M PI Dump

Pi community expert Mr Spock has claimed that the Pi Network team is behind the…

October 23, 2025