While the recent 7.8% drop in Bitcoin might have scared a lot of traders, El Salvador is now taking advantage of the dip in order to buy more crypto. Nayib Bukele, the president of El Salvador, said that the country took advantage of this dip and bought 100 more Bitcoin to add to its national treasury.
El Salvador 'Bought the Dip' Adding 100 More Bitcoins
According to the story by Yahoo Finance, president Bukele just wrote on Twitter that El Salvador had "just bought the dip." This move was just short of a week after he announced that country's plan to sell a whopping $1 billion in tokenized 10-year dollar-denominated bonds.
On Oct 27, El Salvador bought a total of 1,100 Bitcoins. The country also decided to make cryptocurrency its legal tender side by side with the US dollar from Sep 7.
El Salvador's Dollar Bonds Performance
El Salvador's dollar bonds are currently known as one of the worst-performing bonds from emerging markets as of November. The bonds performed lagging behind the Lebanese debt as per data coming from a Bloomberg index.
The selloff in the bonds started as investors weighed in the possibility of higher indebtedness that could happen in the Central American nation. This was paired with concerns that it won't be able to reach a deal with the International Monetary Fund.
Bitcoin Price Drop from All Time High of $69K
According to an article by Reuters, Bitcoin fell by 7.8%, which was its lowest since Oct 12. The cryptocurrency was on track for its biggest one-day drop ever since Sep 20 and is currently down by over 20% after hitting its new all-time high at $69K earlier this month.
On October 28, the country purchased a whopping 1,120 Bitcoins, which gained a lot of attention both, positive and negative, with some supporting while others were criticizing the decision. While a lot of hodlers and crypto enthusiasts supported this decision, the country gained criticism even before officially making Bitcoin a legal tender being rejected by the World Bank in another article by Reuters.
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El Salvador Adopts Bitcoin as Legal Tender
In September, the country became the first ever nation in the world to adopt Bitcoin as a legal tender. This move generated massive global media attention but as per the article, also attracted criticism from foreign financial institutions and the opposition.
Bukele has been able to champion the adoption of Bitcoin with an argument that it will help millions of Salvadorans be able to live abroad but still send remittances back home. He also noted that this could bring investment, financial inclusion, tourism, and also development.
The International Monetary Fund or IMF said that El Salvador shouldn't use Bitcoin as a legal tender pointing out the risks that are related to the cryptocurrency.
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Written by Urian B.
