Bitcoin Market Bloodbath Is Effecting El Salvador

El Salvador president Nayib Bukele, who came into the limelight by making Bitcoin legal tender in his country, is now facing the bear music.

No Buy The Dip

President Bukele has stopped following "buy the dips" strategy, his last Bitcoin purchase was on 10 May, when he purchased 500 BTC when the value of Bitcoin was at $30.744k. Now Bitcoin is below 23k, yet Bukele is not buying anymore.

No Bitcoin Tweets

Bukele used to announce on Twitter about multiple things related to Bitcoin, including his low price bitcoin purchases. He has now stopped tweeting on bitcoin. Bukele's last Bitcoin related tweet was on 6th June, in which he discussed Bitcoin's 680 Billion market capital. Now the BTC market cap is below 430 b, due to been hit hard by the bear. Bukele's silence is fueling speculations that the economic situation in El Salvador is not good.

Uncertain About Bitcoin City and Bitcoin Bonds

Bukele's dream project was creating tax-free Bitcoin city in El Salvador, BTC supporters even started building wild castles in the air dedicating to the city. Bukele even planned BTC Bonds to deliver the project. It is now believed that the postponement of the launch of the bitcoin bond, which was supposed to be done in March 2022, has led to uncertainty of the project.

Economy and Politics

El Salvador is no longer likely to be financially supported by either International Monetary Fund and the World Bank, after the differences erupted from them over adoption of bitcoin Public perception is also deteriorating now, people are blaming Bukele and rival parties are raising it.

Conclusion

In the circumstances that Bukele and El Salvadoran were in, there is no clear outcome. Inflation may occur if the market falls. Mr Bukele would regret not buying the drop if the market rises, but it will give him his rightful place.