El Salvador Buys the Dip—Again

The country's 100 BTC purchase was worth more than $5.4 million.

Shutterstock cover by Jiri Flogel.

Key Takeaways

  • El Salvadorean president Nayib Bukele revealed that the country purchased 100 BTC (worth roughly $5.4 million) today.
  • The purchase brings the country's total holdings up to 1,220 BTC, or roughly $66 million at current prices.
  • While El Salvador has many plans for Bitcoin, it has also attracted backlash from international finance leaders.

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Nayib Bukele, President of El Salvador, announced Friday that the country had purchased another 100 BTC. President Bukele made the announcement on Twitter on a day that crypto prices were down across the board.

“Buying the Dip”

“El Salvador just bought the dip,” Bukele wrote in a tweet. “100 extra coins acquired with a discount.”

The price of Bitcoin fell today by almost 8% to $54,239, a low not seen since early October. At that price, El Salvador’s 100 BTC purchase would be worth more than $5.4 million.

El Salvador declared Bitcoin legal tender in September and purchased it in several batches, beginning with 200 BTC on Sep. 6. Weeks later, it bought another 150 BTC. It then bought 420 BTC on Oct. 28, citing bargain prices each time. Other intermittent additions brought its total holdings up to 1,120 BTC, an amount that is currently worth over $66 million.

The State of Bitcoin in El Salvador

Bitcoin became legal tender on Sept. 7, allowing citizens to download El Salvador’s official wallet and receive $30 of free Bitcoin. El Salvador now aims to build the world’s first Bitcoin city using Bitcoin-backed bonds, a plan announced earlier this week. The country also has plans to spend Bitcoin profits on building schools.

However, the country has attracted criticism from various finance leaders. The International Money Fund (IMF) warned El Salvador against using Bitcoin earlier this month. Yesterday, Bank of England governor Andrew Bailey expressed similar concerns.

Disclosure: At the time of writing, the author of this piece owned less than $100 of Bitcoin, Ethereum, and altcoins.

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