El Salvador’s President has declared that starting Nov. 17, the country will purchase 1 BTC daily. El Salvador currently holds 2,381 BTC with a total investment of $103 million.
El Salvador, the first country in the world to accept Bitcoin as legal cash in September 2021, is restarting its BTC purchases after pausing for several months due to the market’s bearishness.
El Salvador’s president, Nayib Bukele, declared on November 16 that the country of Central America would begin buying Bitcoin daily on November 17. The news was made about three months after the country’s final BTC acquisition in July 2022.
As soon as Bitcoin became legal tender in September 2021, El Salvador began purchasing it. At the time, BTC was in the middle of a bull market, making every investment the country made appear profitable since the price was setting new records every other week.
But as the bear market began to take hold by the second quarter of 2022, El Salvador’s early BTC purchases began to seem like a risky bet that cost him dearly.
El Salvador presently possesses 2,381 BTC at an average purchase price of $43,357, according to public records. As a result, the country’s BTC purchase cost close to $103.23 million, while the price of the same BTC is today $39.4 million.
El Salvador may be able to somewhat offset its losses in the upcoming months with the introduction of a new BTC purchasing procedure at a time when the most popular cryptocurrency is trading at a new cycle low.
Beyond the country’s losses on its Bitcoin purchases, the leading cryptocurrency has played a crucial role in considerably lowering the cost of cross-border remittances and boosting the tourism industry.
Due to the severe crypto winter, El Salvador’s adoption of Bitcoin may not seem very optimistic right now. By merely hanging onto its BTC purchase, the country can easily make up its losses in the upcoming bull cycle, according to the history of the price of bitcoin.
