El Salvador’s unrealized loss from Bitcoin reserves hits $46 million as Bitcoin falls

The ‘paper’ loss from El Salvador’s holdings in the state Bitcoin fund exceeded $46.1 million, according to data from Buy Bitcoin Worldwide.

According to the resource, the government holds 2,301 BTC in reserves, their current value is $54.8 million.

On June 13, Bitcoin slid below $23,000. At the time of writing, quotes had risen to $23,900. At an average purchase price of $43,900, El Salvador’s ‘paper’ loss stood at $46.15 million.

The authorities first began buying BTC on the eve of the cryptocurrency’s legalization in the country in September 2021. They created for this a special fund of $150 million.

By the end of September, El Salvador used the dip to $45,000 to further acquire 150 BTC, bringing total reserves to 700 BTC.

During the price drop in November, another 100 BTC were purchased; in January 2021 an additional 410 BTC were acquired on the dip. The crypto community at the time calculated that the ‘paper’ loss stood at $20.7 million. In this context, the renowned economist and critic of digital gold Nouriel Roubini urged the government of El Salvador to call for the impeachment of President Nayib Bukele.

In May, the head of state reported that the government purchased an additional 500 BTC at an average price of about $30,744.

MicroStrategy’s paper loss from its held Bitcoin during the market downturn exceeded $1 billion.

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