Banking on the dip: El Salvador bags 410 BTC for only $15 million
January 22, 2022
- Nayib Bukele tweeted that El Salvador has bought 410 BTC in the dip
- Bitcoin has hit a 6 month low, dropping to $38,000 a coin
- El Salvador previously snapped up 150 Bitcoins when the price dropped by 10%
- El Salvador’s BTC investments are still very much in the red, with an estimated loss of about $20 million.
Bitcoin has hit a 6 month low, dropping to $38,000 a coin on the 22nd of January 2022. This however did not stop Bitcoin enthusiast and President of El Salvador, Nayib Bukele from bagging a “bullish” 410 Bitcoin for a measly $15 million.
Some guys are selling really cheap,” he wrote on Twitter, adding that he actually “didn’t miss [the dip]”.
Nope, I was wrong, didn’t miss it.
— Nayib Bukele ?? (@nayibbukele) January 21, 2022
El Salvador just bought 410 #bitcoin for only 15 million dollars ?
Some guys are selling really cheap ??♂️ https://t.co/vEUEzp5UdU
It has not yet been confirmed whether the latest Bitcoin purchase was from public or personal funds. However, it has been reported that the president makes the country’s cryptocurrency purchases from his mobile phone.
Bukele, has long been one of cryptocurrencies greatest promotors and has even remarked on building a “Bitcoin City”, even with a GDP as low as $24.64 billion (the U.S. and China have a respective GDP of $19.48 and $12.238 trillion).
El Salvador previously snapped up 150 Bitcoins when the price dropped by 10% upon news that Chinese property developer Evergrande was at risk of a debt default.
We just bought the dip.
— Nayib Bukele ?? (@nayibbukele) September 20, 2021
150 new coins!
El Salvador now holds 700 coins.#Bitcoin??
The country’s progressive adoption of Bitcoin as legal tender has put El Salvador at the frontlines of cryptocurrency discussions and has on occasion influenced the value of the coin itself. For example, when the country declared Bitcoin legal tender in June, Bitcoin’s value jumped up by nearly 8%.
The country’s early adoption of Bitcoin as legal tender could be tied to their long history of remittances. As Salvadorans living abroad regularly transfer money to aid their families back home. According to CNBC those remittances make up $6 billion, or around a quarter, of the country’s gross domestic product. Making Bitcoin the perfect fit to avoid the high middleman fees associated with foreign currency transfers.
El Salvador’s BTC investments are still very much in the red, with an estimated loss of about $20 million. Bitcoin hit its peak near $70,000 in November but has now lost more than 40% of its value. However, given crypto currency has risen by 3,873.65% in the last 5 years, many mimic Bukele’s sentiments that now is the time to “buy the dip”.
