El Salvador purchased the bitcoin dip. In the midst of a massive crypto market decline, President Salvadoran announced that his country had purchased 500 bitcoins. The Salvadoran government now owns 2,301 bitcoins, after El Salvador made the currency legal tender.
El Salvador Purchases Bitcoin Dip
El Salvador purchased the dip amid crypto chaos. Nayib Bukele, the president of Salvador, posted Monday via Twitter that 500 bitcoins had been purchased by his country. “El Salvador just bought the dip! 500 coins at an average USD price of ~$30,744,” he wrote.
He tweeted his tweet at a time when the cryptocurrency market was losing billions and bitcoin’s price fell over 50% from its peak.
BTC was trading at $31,607. BTC traded at $31,607. It fell 8.5% over the 24 hours, 18.1% for the past seven days and 25.4% for the 30 days.
El Salvador was the first nation to legalize bitcoin alongside the U.S. dollars in September 2013.
The company began purchasing bitcoin regularly since then. Following an initial purchase for 700 bitcoins, El Salvador purchased 420 BTC (in October), 100 BTC (in November), 171 BTC (in December) and 410 BTC (in January). With Monday’s purchase, the total number of BTC purchased by El Salvador has grown to 2,301 bitcoins.
According to one estimate, El Salvador’s total bitcoin holdings have lost more than $30 million in value. But President Bukele remains bullish on bitcoin and expects that the price will hit $100K in 2019.
El Salvador is also planning to issue Bitcoin bonds. However, the launch date hasn’t been determined. Alejandro Zelaya, El Salvador’s treasury minister, explained that the market conditions and the Russia-Ukraine war have affected the bond issuance. “We are waiting for the right moment and the president says when … It depends on how the market is,” he noted.
How do you feel about El Salvador purchasing 500 Bitcoins when the price of cryptocurrency plummeted 50%? Please comment below.
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