Cryptocurrency

El Salvador buys the dip again amid market sell-offs due to COVID-19 concerns

The President of El Salvador, Nayib Bukele took to Twitter to announce that his nation has bought the dip to the tune of 100 BTC, amid market sell-offs exasperated by a new strain of the COVID-19 virus, which is reportedly vaccine-resistant.

The cryptocurrency market suffered a loss as a result of this new variant, which the World Health Organization named ‘Omicron’. The market capitalization lost 8.78%, from trading 2.62 trillion in the early hours of the day to as low as 2.39 trillion. Flagship cryptocurrency asset Bitcoin suffered a $6,000 loss on the day, after trading a daily high of $59,450, to trade as low as $53,569.76, representing a 9.89% decline.

This new addition brings the total BTC holdings of the Latin American nation to 1,220 BTC, worth approximately $66.4 million using a current market price of $54,400. President Bukele tweeted, “El Salvador just bought the dip. 100 extra coins acquired with a discount.”

What you should know

  • President Bukele first announced that El Salvador would be making their first major BTC purchase on the eve of the country’s Bitcoin Law going into effect on Sept. 7, buying 200 BTC when the price was roughly $52,000. The nation has seen added 1,020 BTC, with the nation buying whenever there has been a major sell of in the price of Bitcoin.
  • Bukele has proposed several initiatives in the country around Bitcoin adoption and mining. The government has started construction of the infrastructure to support the state-issued Bitcoin wallet, Chivo, and recently unveiled plans to launch its own Bitcoin City at the base of a volcano, funded initially by $1 billion in Bitcoin bonds.
  • Since the adoption of Bitcoin as a legal tender, the Salvadoran government has been investing gains in various infrastructure development projects. In mid-October, the President announced that the $4 million from the profits of their Bitcoin Trust will be used to construct a new veterinary hospital in the capital, San Salvador.
  • Early November, Bukele announced that the surplus earned from the state’s Bitcoin Trust account will be used for constructing 20 new schools.

Many Salvadorans have pushed back against the crypto initiatives, specifically protesting Bukele and Bitcoin. In September, residents marching through the capital city destroyed one of the Chivo kiosks and defaced the remains with anti-BTC logos and signs.

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