Bitcoin (BTC) and almost all of the crypto market are going deep into the crypto winter. BTC plunged much deeper below the $ 18,000 mark as it tried to find reliable support. But despite the bloodbath, the El Salvador President has something to say.
Bitcoin Crash Advice From President Bukele: "Patience is The Key"
The crypto market continues to show "extreme fear," with a score of 6 in the Crypto Fear & Greed Index, just 1 point above the rating the market got during the BTC price crash on Aug 22, 2019.
El Salvador President Nayib Bukele, however, took to Twitter to try and allay the fear of the people amidst the ongoing crypto bloodbath.
I see that some people are worried or anxious about the #Bitcoin market price.
— Nayib Bukele (@nayibbukele) June 19, 2022
My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market.
Patience is the key.
As many may remember, El Salvador was one of the countries that first made Bitcoin a legal tender a few months ago. In the country, anyone can use their BTC to purchase from street sellers and retail chains. Essentially, BTC is on an equal footing with El Salvador's native fiat currency and the U.S. dollar. All of which are acceptable mediums of exchange for businesses in El Salvador.
Moreover, Bukele also took BTC adoption a step further. They "bought the dip" with public funds on May 10, stacking as many as 500 coins at a price of $30,744. President Bukele posted about it on his Twitter account.
El Salvador just bought the dip! 🇸🇻
— Nayib Bukele (@nayibbukele) May 9, 2022
500 coins at an average USD price of ~$30,744 🥳#Bitcoin
Recent reports show us that El Salvador has around 2,300 total BTC in its coffers. The current price action of the king coin, however, puts El Salvador's crypto investment in a precarious situation. Right now, the value of their BTC holdings has already shed more than 50%.
Despite that, their own finance minister puts the categorization of the investment as something that offers only "extremely minimal fiscal risk."
Related Story : El Salvador's Top Crypto Investment Down to Half Its Value
Bitcoin Bulls Keep The Faith, $100,000 Target Still Possible for 2022
Several experts believe that the emerging global anxiety towards the markets is the factor that continues to drag the crypto market down. They cite factors such as inflation, stock market instability, increasing interest rates, and looming recession.
Add to that the Federal Reserve's move to raise interest rates by 75 basis points, radically putting measures to prevent runaway inflation. According to experts, risk aversion drove the decline of the crypto market in recent weeks.
Edward Moya, a senior market analyst at OANDA, said that Wall Street investors shifted to less risky assets amid the backdrop of a looming "deterioration for the U.S. economy."
"Surging recession fears are crippling appetite for risky assets and that has crypto traders remaining cautious about buying bitcoin at these lows," said Moya.
Despite troubling market conditions, however, Bitcoin bulls have chosen to remain optimistic. According to Jurrien Timmer, a director of global macro at Fidelity Investments, BTC's increasing price trend over time will tell us that it is likely to sustain its rally in the coming months.
According to Timmer, BTC could reach the $100,000 target by 2023. Ian Balina, the founder of crypto research firm Token Metrics, shares the same belief, even going as far as predicting that BTC can go to $100,000-$150,000.
Crypto experts say that BTC attaining its target is not a matter of "if." It is only a matter of when.
