El Salvador, unprepared by the bear market, bought 80 bitcoins - will others do the same?

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El Salvador’s president and bitcoin fanatic, Naib Buckle, doubled his country’s sunken investment in cryptocurrency by buying more than $ 1.5 million on Friday.

The Central American country made headlines last year when it became the first country to recognize Bitcoin as legal cash.

El Salvador has bought bitcoin in addition to debuting in the crypto market, often during price declines.

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After the acquisition, Buckle commented on his Twitter account:

“Bitcoin is the future! Thank you for selling cheap.”

El Salvador bought the proverbial dip

In this bearish market, the President says the amount purchased is $ 19,000 per BTC unit, bringing the total cost to just over $ 1.5 million.

Based on data from the tracking website nayibtracker.com, El Salvador has paid an average of about $ 46,000 per BTC since September 2021, representing a loss of 56 percent or about $ 60 million.

By the middle of this month, Bitcoin had fallen below $ 20,000, and Buckle wrote:

“I can say that some people are concerned about the market value of Bitcoin.”

Bukel is one of the few people in the cryptocurrency sector to publicly promote Bitcoin.

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MicroStrategy was the most recent to do so, purchasing 480 BTC for 29 10 million on June 29 at an average price of, 20,817.

El Salvador’s most recent bitcoin purchase took place on May 9, when it received 500 BTC. Buckle announced on his Twitter account that the average purchase price for the $ 15 million transaction was $ 30,744.

As of this writing, Bitcoin is trading below the 20,000 threshold at 19,109, down 9.4 percent from last week.

BTC total market cap at $365 billion on the daily chart | Source: TradingView.com

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Saving face?

As the price of Bitcoin in El Salvador has begun to fall further since the country’s legal tender, Finance Minister Alejandro Zelaya has tried to give a positive spin on the situation, claiming that the government did not actually suffer a loss because it did not sell any. Its bitcoin.

Following the recent acquisition, El Salvador now owns a total of 2,381 BTC. In the past few months, the country has paid more than $ 105 million to achieve this. However, due to continued market volatility, the nation is already facing unrealistic losses of about $ 60 million.

In January, the International Monetary Fund suggested that El Salvador thaw $ 150 million in trust funds when it created cryptocurrency legal cash and returned unused money to government coffers.

Featured image from Cointribune, chart from TradingView.com



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