The Nayib Bukele administration has bought more than 2,300 BTC in the name of El Salvador. Amid a bearish crypto market environment, Bitcoin is trading at around USD 31,205.
Bitcoin (BTC) holders adopt the slogan Buy the dip when the price goes down. Following that rule, the Salvadoran government recently bought more cryptocurrencies to increase the reserves.
Nayib Bukele, the president of the Central American country, said that El Salvador had just bought the dip. He reported that they had acquired 500 BTC at an average of USD 30,744 per unit. That is equivalent to an investment of just over USD 15 million.
El Salvador now has over 2,301 BTC, as its previous purchase of 410 BTC had raised its global holdings to 1,801 BTC.
The Salvadoran president took advantage of the recent drop in the price of Bitcoin, which has affected the rest of the crypto market. When writing this article, the pioneering cryptocurrency is trading at around USD 31,205.
In that way, Bukele repeated the same economic move he made in January when he purchased Bitcoin at the dip. He took advantage of that situation to buy the above 500 BTC to increase the government reserves.
It is impossible to verify how much Bitcoin is currently available to the Salvadoran government. The president reports the purchases, but there is no official information about the address where the coins are resting.
The Salvadoran Government Has Bought BTC for Months
In December, the Salvadoran president made the last purchase of Bitcoin of that year, acquiring about 21 BTC. At the time, the holdings of the Central American country reached 1,391 BTC.
In November 2021, Bukele bought 100 BTC, bringing the government reserves close to 1,230 BTC. On September 7th, the Bitcoin Law entered into force, and the pioneering cryptocurrency became legal tender. One day before, El Salvador had acquired 400 BTC, the first of several purchases that its government would make.
Bukele takes advantage of each drop in the BTC price to buy more coins and include them in the government reserves. He has used them to invest in the country, which has allowed him to defend his acquisitions.
Bitcoin City Is a Surprise amid a Bearish Crypto Market Environment
The Salvadoran president, Nayib Bukele, recently posted images of the urban planning of Bitcoin City. Amid a sharp drop in the price of Bitcoin, that post takes the members of the ecosystem by surprise.
There has been a state of emergency for over a month, and more than 26,000 suspects have gone to jail. For that reason, Bukele had not commented on Bitcoin and its adoption in El Salvador.
Those are the first concrete comments and actions on Bitcoin from the Salvadoran government for a few months. It is relevant to remember that the launch of the Volcano Bonds has been long in coming. However, Finance Minister Alejandro Zelaya said that they were waiting for the price of Bitcoin to increase to issue them.
By Alexander Salazar