El Salvador took the plunge after reports about a Covid-19 new strain started spreading, causing a crash in cryptocurrency prices. It has now added 100 additional bitcoins in its treasury, despite an increase of 1%.Recent warning from the International Monetary Fund, bringing down the number of bitcoins bought to 1,220.
El Salvador buys the dip: 1 220 bitcoins purchased up to date
El Salvador bought 100 additional bitcoins during Friday’s sale, as the news about a new coronavirus strain spread. Nayib Bukele, president of Salvadoran, sent a tweet on Black Friday confirming that the country had bought the Bitcoins. “100 extra coins acquired with a discount,” he wrote.
An advisory panel of the World Health Organization (WHO) on Friday classified the new Covid-19 variant, first detected in South Africa, as a highly transmissible virus, naming it “Omicron.”
According to reports, the coronavirus strain caused a drop in crypto markets worth billions of dollars Friday. Bitcoin’s price fell to $53,798 on Friday, from $59165 on Thursday. Based on data from Bitcoin.com Markets, BTC trades at $54,830.98 per bitcoin at the time this article was written.
El Salvador declared bitcoin legal tender on September 7. The price for bitcoin was $46,000 at the time.
El Salvador, which has 1,220 BTC, purchased them all since Bitcoin became legal tender. According to Bukele’s announcements.
The day before the country’s bitcoin law went into effect, El Salvador purchased two sets of 200 bitcoins. El Salvador purchased 150 BTC and 150 coins more in September 7th, as well as 150 BTC on September 20th. Bukele said at the time, “El Salvador now holds 700 coins.”
El Salvador has since purchased 420 additional coins, bringing its total to 1,120. Friday’s purchase pushes the country’s bitcoin stash to 1,220 coins. The current market price of 1,220 bitcoins is $66.9million.
President Bukele announced last week a plan to build the world’s first “bitcoin city” powered by a volcano and financed by bitcoin bonds. Except for the value-added taxes (VAT), there will not be any taxes in bitcoin city, he said.
The International Monetary Fund (IMF), however, warned that the country should not use BTC legal tender within a few days of the announcement. The IMF cited “significant risks to consumer protection, financial integrity, and financial stability” as the reasons, adding that it “also gives rise to fiscal contingent liabilities.”
Do you agree with El Salvador purchasing the dip in crypto market sell-offs, as new Covid-19 strain emerged. Comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.