Bitcoin has crashed drastically in the past week and has made a low of $29.7k. This bloodbath is not new, and we saw something similar back in 2021. However, what’s new is last time, El Salvador didn’t make it legal tender at that point and didn’t buy the dip, whereas yesterday, it filled its pockets with cheap Bitcoins. They purchased 500 Bitcoins for an average price of $30,744, which is much lower than their previous buys. Current estimates are they are down 25-30% in their holdings.
El Salvador buys the dip
With their latest purchase, El Salvador now has acquired 2301 Bitcoins in total. The country has shown a strong belief in Bitcoin by making it legal tender and buying multiple dips since the price corrections took place. Their initial buys were met with a lot of criticism, but it didn’t stop El Salvador from getting their hands on cheap BTC.
El Salvador just bought the dip! ??
500 coins at an average USD price of ~$30,744 ?#Bitcoin
— Nayib Bukele (@nayibbukele) May 9, 2022
El Salvador made their first purchase of BTC after making it legal tender, and that was 700 Bitcoins. In October 2021, they added another 420 coins, in November 171 Bitcoin, 410 Bitcoins in January, and after that 500 coins yesterday. The country’s tremendous belief in Bitcoin has strengthened my trust in its future as well.
The country also plans to issue Bitcoin bonds to raise $1 billion and invest $500 M in Bitcoin and the remaining to build its Bitcoin city. Reports suggest that there will be no tax in the city. The bonds might have been issued till now if the Russia-Ukraine war didn’t break out. The country’s treasury minister said that they are waiting for the right moment to issue the bonds.
Bitcoin’s price
Right now, the price of Bitcoin is $31,457, which is a little relief as the bears were unable to bring it down much lower than $30k. That was also the level that most of us expected would hold, just like the last correction. So, again it could be the only time you see Bitcoin at this level. As bulls, we can just hope that the price doesn’t crash below $30k, which is critical support for BTC.
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