El Salvador’s Bitcoin investment suffers amid crypto meltdown

By Philip Wang and Tara Subramaniam, CNN

El Salvador has embraced Bitcoin like no other country, with the government purchasing hundreds of coins last year as it announced that the cryptocurrency would become legal tender.

But as the cryptocurrency market cools off, El Salvador’s investment is rapidly losing value — to the tune of at least $50 million.

Since September 2021, the El Salvador government led by President Nayib Bukele has amassed 2,301 bitcoins that were worth $103 million. Now, they are worth around $51 million.

The wider crypto market, which grew rapidly during the pandemic, has taken a tumble in recent months. On Monday, the value of Bitcoin fell below $24,000, marking its lowest level since December 2020.

Nevertheless, Bukele on Tuesday suggested his enthusiasm for the cryptocurrency had not waned.

Reacting to a reported comment from El Salvador’s finance minister that the drop represented only a small percentage of their national budget, Bukele tweeted, “You’re telling me we should buy more #BTC?”

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CNN’s Ana Cooban contributed reporting.