- El Salvador bought 150 Bitcoin during the fall in BTC prices.
- After falling 17.3% this week, Bitcoin has recovered to above $42k.
- Bitcoin ATMs in the country have reached 205, the highest after the US and Canada.
While there was panic in the market after a considerable dip in Bitcoin prices, El Salvador did not let the price crash deter them and bought 150 Bitcoins during the dip.
The crypto market tumbled in tandem with the global markets that saw Bitcoin price falling as low as $39,500, Ether to about $2,650, and the total crypto market cap falling nearly to $1.85 trillion.
Since this deep correction that sent us to early August level, Bitcoin is back above $42,000, and Ether is nearing $3k while the total market cap stands at $1.95 trillion.
Buying the dip
This week, President Nayib Bukele announced on Twitter that the central American country added 150 Bitcoins more to its Bitcoin stash. With this latest addition, El Salvador now holds a total of 700 Bitcoin, worth roughly $30 million at current prices.
While “not financial advice,” “presidential advice” was pretty clear — “They can never beat you if you buy the dips,” said Bukele on Monday.
It isn’t El Salvador’s first ‘buy the dip’ either, as the country also bought the Bitcoins on the day it flash crashed below $43k.
First Nation to Adopt Bitcoin
Earlier this month, El Salvador became the world’s first nation to adopt Bitcoin as legal tender alongside the US dollar. On Sept. 1st, it approved a law to create a $150 million fund to accumulate Bitcoin to facilitate conversions between BTC and USD.
The country is doubling down on its BTC bet despite not getting support from the IMF or the World Bank in its Bitcoin adoption.
Besides the credit rating agency S&P saying that this adoption has “immediate negative implications” for its credit rating, El Salvador is also facing challenges from the general public who are protesting and marching against the government’s Bitcoin move.
The Salvadoran Court of Accounts, however, is investigating the government’s Bitcoin purchases and Chivo kiosk construction following a complaint filed by Human Rights Group, Cristosal.
On Tuesday, Bukele also tweeted that the government’s Bitcoin wallet Chivo now has 1.6 billion users.