El Salvador has “bought the dip,” as is customary when Bitcoin prices fall. President Nayib Bukele wrote on Twitter that the Central American republic had purchased 150 Bitcoins for holding it on reserve.
Its most recent buy cost an average of $48,670 and came after BTC’s stomach-churning drop on Saturday morning.
Purchasing crypto when there is a downfall in the market is known as “buying the dip,” and for many crypto enthusiasts, severe drops give an attractive chance to get exposure at low prices.
BTC had plummeted at the lowest of $42,800. If El Salvador had been quicker in the purchase, there would be a good $900,000 profit almost immediately.
However, acquiring bitcoin is more difficult than it appears when markets climb or fall because a lot of trading sites experience outages or major interruption.
Twitter row erupts
Several critics on Crypto Twitter criticized Bukele for buying such a risky product. Bukele didn’t waste any time in responding. The president focused on gold, Schiff’s favored store of value. He stated that El Salvador had already made a profit with the previous purchase in less than 24 hours. They currently have gold, totaling 44,106 oz in reserves. It’s worth $79 million, down 0.37 percent compared to the previous year. According to Bukele, it would have been worth $204 million if it had been sold a year ago and replaced with Bitcoin.
Since El Salvador legalized the use of Bitcoin as a tender in September, the president’s tweet has been shared over 10,000 times. He has won over many supporters in the crypto community. Sciff wrote that for the time being, Bukele was in the green zone but was still losing money on the Bitcoin he bought on the drop last week. “You’re placing a large wager with the money of others. It’s not going to go well for any of the two!” he added.
420 More Bitcoin Added
Earlier in the month of October, the El Salvador government purchased around 420 bitcoin. The new bitcoin purchase, worth approximately $25 million according to the market price, was the first government purchase of the cryptocurrency since Bukele said it had purchased 150 Bitcoins on September 20. El Salvador is the first country to accept bitcoin as legal cash against the US dollar, which Bukele claims would reduce remittance costs from the Salvadorans abroad.
The poor country’s economy is largely reliant on over $6 billion remittances sent home each year, accounting for around a quarter of its gross domestic product, with half the population relying on the transfers.
