El Salvador buys 500 Bitcoin as price drops below $30,000 – BeinCrypto

Nayib Bukele, the Salvadoran president, once again took advantage of Bitcoin’s decline to add tokens to his stash. This umpteenth acquisition is by far the largest since its first purchase in September 2021.

Nayib Bukele Buys Bitcoin Bottom

Since Bitcoin became legal tender in El Salvador, its president has continued to increase purchases of this asset to build up a significant reserve. As Bitcoin loses more than half of its value since its all-time high in November, President Nayib revealed the acquisition of additional tokens.

In his tweet from this Monday, it was learned that 500 Bitcoins had recently been purchased. The average price was $30,744 for a total of nearly $15 million spent on this latest acquisition.

This represents El Salvador’s largest purchase by number of Bitcoin to date. But in terms of dollar investment, the $25 million that was spent at the end of October to acquire 420 Bitcoins is the biggest expense. According to Bloomberg datathe country has bought a total of no less than 2,301 Bitcoins to date.

Currently, the total value of these tokens is approaching $74 million. According to Bloomberg figuresthis constitutes a loss of 28% compared to the 103 million dollars that were spent on the purchase.

These repeat purchases go against the IMF’s warnings about: “the significant risks associated with the use of BTC for financial stability, financial integrity and consumer protection”. Despite everything, Bukele has faith in his project and continues to add Bitcoin to his balance sheet.

A usual practice for El Salvador

Buying the dip as many investors do has become commonplace for El Salvador. El Salvador’s first Bitcoin purchase came amid a bear market on Sept. 6 when a massive sell-off caused the asset to drop 16%.

The first order had been for 200 BTC for an average price of $46,700. On the same day, another order of the same number had been made. This time, the average price had gone up by a hundred dollars.

By the next day, 150 more Bitcoins had been acquired for $6.945 million. Then, on October 27, 420 Bitcoins were added to the portfolio with an average price of $58,800 while the price of Bitcoin fell by almost 8% during the day.

At the very beginning of bear market, El Salvador was buying an additional 100 Bitcoins as of November 26. The asset had gone from a peak of $69,044 to a value of $54,108 between November 10 and 26.

Two other purchases also took place in December. While the price of BTC fell by 22%, a first purchase of 150 BTC was made on December 4. The next one, carried out on December 21, corresponded to the acquisition of 21 BTC for an average price of $48,670.

Prior to this latest purchase, 410 Bitcoin were acquired for an average price of $36,585 at the start of 2022.

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El Salvador buys 500 Bitcoin as price drops below $30,000 – BeinCrypto


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