When it comes to acquiring Bitcoin, El Salvador follows a “buy the dip” approach.
This is the country’s lowest-cost purchase to date.
El Salvador, known as the Bitcoin nation, recently stated that it had acquired 500 BTC at an average price of $30,744 per coin, totaling approx. $15.4M. President Nayib Bukele tweeted, “El Salvador just bought the dip! 500 coins at an average USD price of ~$30,744 #Bitcoin.”
Long-term Goals Into Play
It’s a bloody Monday for the whole cryptocurrency market, with all tokens down more than 10%. The market continues to sell down after the Federal Reserve’s policy announcement last week. In addition, Bitcoin had been approved as a legal currency in the Latin American country, a decision that the International Monetary Fund (IMF) and other international organizations have slammed.
Efforts to stem the tide of soaring inflation in El Salvador began in September 2021 with the adoption of BTC as legal money. When bitcoin became legal cash in the nation, it acquired a significant amount of the most valuable cryptocurrency asset. When it comes to acquiring Bitcoin, El Salvador follows a “buy the dip” approach. When the price of Bitcoin drops, the President declares that additional Bitcoin will be added to the nation’s reserve currency fund.
Since El Salvador’s adoption of BTC as legal cash, this is the country’s lowest-cost purchase to date. Bukele feels that “some guys are selling really cheap,” which supports his long-term goal of widespread Bitcoin acceptance in the face of the current market sell-off.
The price of BTC increased steadily starting in mid-July 2021 and reached a record high of about $69k in the first week of November. However, investors shifted their earnings from BTC to other tokens over the following five months, resulting in a significant drop in market values.