This national president "speculation" lost more than $ 50 million. What should I do next?

The cryptocurrency market is sorrowful.

Compared with the peak of the total market value of $ 3 trillion last year, the global cryptocurrency market is now less than $ 1 trillion.

In the end what happened?

Bitcoin fell below the 20,000 US dollars again

For the plunge of Bitcoin, some media call it "free fall".

On June 19, Bitcoin lost $ 18,000 twice and touched the minimum of $ 17934.67 on the day, refreshing a new low since the end of 2020.

On June 20, Bitcoin rebounded slightly to the $ 20,000 mark.

After a day of peace, on June 22, Bitcoin fell below $ 20,000 again, a decrease of 5%within 24 hours, and a decline of over 56%during the year.

From the perspective of a single -day transaction price, Bitcoin has gone out of a wave of 12 consecutive days in June, setting the longest continuous decline since its birth in 2009.

According to Coingecko's data, Bitcoin has fallen by about 70%since November last year reached the pinnacle of $ 69,000.

Cao Yubo, a researcher at the Financial Marketing Department of Construction Bank, said that the recent decline in the decline mainly stems from the "death stamp" encountered by the stable currency UST and its sister token LUNA. Compared with the highest point in 2022, major cryptocurrencies such as Bitcoin and Ethereum have been cut, and the stocks of related companies have fallen sharply.

Cao Yubo said that the US Treasury Secretary Yellen emphasized at the hearing of the Senate Banking Committee that cryptocurrencies had a crisis and financial stability, and called on Congress to authorize to supervise. Global risk assets have been affected.

It can be seen that the concerns of global high inflation and worsening economic prospects, coupled with the plunge in the stock market, triggered investors to escape the field of cryptocurrency investment.

President Salvador's speculation loss of more than 50 million US dollars

One of the big losers in this round of Bitcoin is President Salvador.

Salvador, a Central American country, became the first country in the world as a legal currency on September 7, 2021. This decision came from their president Bakle.

President Bakl claims that the purpose of this is to attract investment, stimulate the economy, and create employment, but in fact, Salvador's country is involved in a crazy speculative gambling.

Data show that from September 7 last year to the present, Salvador purchased about 2,300 Bitcoin at an average unit price of $ 46,000, with a total cost of about $ 105 million.

As Bitcoin recently fell below the $ 20,000 mark, Bakl's speculation has experienced a book loss of at least $ 50 million.

However, he seemed very calm about this plunge. Recently, he also tweeted that there must be patience, and the value of Bitcoin will increase significantly after the bear market.

What's even worse is that Salvador's economic situation is not good, and the state's financial situation is worrying. In 2021, the national debt level accounted for more than 90%of GDP. It was really sweating for their president's idea of ​​continuing coins.

What should I do if Salvador, who is implicated by the market plunge because of the presidential speculation?

The International Monetary Fund (IMF) made suggestions for El Salvador: It is necessary to strengthen supervision of Bitcoin. Bitcoin uses risks in terms of financial stability, consumer protection, and related financial and debt, urging the Salvado authorities to cancel Bitcoin's statutory status.

Where is Bitcoin going in the future?

Zhang Ming, deputy director of the Financial Institute of the Chinese Academy of Social Sciences, believes that the value of Bitcoin has fluctuated huge and its own price is extremely unstable. This determines that it is difficult for Bitcoin to play the two functions of traditional currency denominations and trading media.

"Bitcoin's attributes are more a strange financial asset. People hold Bitcoin to obtain investment income, rather than using it as a transaction medium or valuation scale."

He also pointed out that Bitcoin lacks credit support, such as the lack of fiscal taxation rights behind traditional countries. Lack of credit support will damage investors' confidence in this currency in certain circumstances.

In the view of Ding Anhua, chief economist of China Merchants Bank, since the advent of Bitcoin, people's understanding of it is constantly evolving, but the possibility of Bitcoin and other cryptocurrencies replacing sovereign legal currencies is zero. At the same time, central banks of various countries have accelerated the process of digital currency.

Ding Anhua said that the decentralized payment mechanism built by Bitcoin is not necessarily more efficient even more technically than the existing mobile payment. However, the anonymous and credit mechanisms of Bitcoin payment are likely to become an alternative tool for multinational payments, which have evolved to dark network transactions and underground economic activities. In this context, governments of various countries will start to crack down on illegal transactions that Bitcoin may involve.

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