El Salvador took advantage of the opportunity to buy the dip when the Bitcoin price dropped below $45,000 following a strong week, and purchased 150 BTC.
El Salvador’s government continues to embrace market possibilities despite warnings from international agencies about its acceptance of Bitcoin (BTC).
On Monday morning, as the price of Bitcoin went below $46,000, Salvadoran President Nayib Bukele revealed on Twitter that his country had “bought the dip.” The Central American government now has 700 BTC, worth close to $32 million at the time of writing, thanks to the addition of 150 additional coins.
Bukele provided his “presidential advice” by noting that “They can never beat you if you buy the dips,” an obvious dig to the “not financial advice” disclaimers seen across the crypto sector.
Presidential advice— Nayib Bukele (@nayibbukele) September 20, 2021
According to Cointelegraph, El Salvador purchased another drop on the day Bitcoin became legal tender in the country, when Bitcoin had a flash fall that brought the price of the cryptocurrency below $43,000.
El Salvador’s drive toward acceptance piqued the interest of the cryptocurrency community, particularly because of the possibility of a tax exemption for Bitcoin investors. It is true that the government’s decision to recognize Bitcoin as legal cash has not been without its difficulties.
Aside from protests and marches against the government’s adoption of Bitcoin, credit rating agency Standard and Poor’s Global stated that the adoption “has immediate negative implications” for the country’s credit rating since it “has immediate negative implications.”
El Salvador’s chances of obtaining a $1 billion loan deal from the International Monetary Fund, according to S&P, may be harmed as a result of the decision.
It was on September 7 when El Salvador made history by becoming the first government in the world to recognize Bitcoin as legal cash.
The government had 400 bitcoins at the time. El Salvador increased its Bitcoin holdings to 700 BTC by taking advantage of two price drops in two weeks, each time purchasing 150 coins. El Salvador increased its Bitcoin holdings to 700 BTC by purchasing 150 coins each time the price fell.