The second scenario is highly unlikely. From what I've read, El Salvador's average purchase price is somewhere around $50,000. Bitcoin is up to $100,000; there's no way it's going to crash below that.
Putting aside the fact that 10 out of the last 10 asset bubbles in human history have been driven by a massive number of people believing it's "impossible" for the asset to go down in price, even if Bitcoin merely fell in half and wiped out all of El Salvador's gains, the president there would take a massive hit since they will have lost billions in unrealized gains.