By Shelly Melancon (Switzerland)
El Salvador has capitalized on the bearish crypto market to add to its stash of Bitcoin. Amid the Black Friday Sales, the crypto nation announced the purchase of an additional 100 BTC worth $5.4M at latest prices.
In a tweet shared on Friday, President Bukele made the announcement that the country had added 100 extra coins at a discount, despite BTC’s bearish prices this week. Bukele remained unphased about it, and took the gamble like he has always done to boost El Salvador’s BTC holdings.
Prominent Bitcoin critic and gold investor Peter Schiff was unimpressed with Bukele’s actions. In his response, he noted that the buy was unfortunate for El Salvadorans, predicting that the country would cut its losses and sell its purchases.
El Salvador Continues to Benefit from the Dip
El Salvador has never backed down on buying the dip should it happen. The country is known as an excellent BTC maximalist, taking advantage of the bear market to purchase more with the intent to earn profits once prices recover.
Last month, the self acclaimed “Emperor of El Salvador”, announced that the country had purchased 420 Bitcoins after its price fell to the $60k range. Less than an hour after the announcement, BTC entered the recovery phase as price went up, which Bukele boasted of in his Twitter page.
Also read:In September when it became legal tender, BTC price crashed barely two hours after the announcement, but Bukele remained steadfast and bought the dip. Prices eventually soared a few weeks later.
Bukele is known for his perfect timing as regards buying the dip. When asked how he does this, the president revealed that it was all due to a rebalancing of accounts in El Salvador’s BTC Trust, which enables him to cash out when BTC gains.
Through his rebalancing strategy, the country has been able to raise money from its BTC Trust to fund public works. In October, Bukele disclosed the building of a new veterinary hospital in San Salvador, the capital which is near completion.
El Salvador to Build Bitcoin City
Aside from building a pet hospital, Bukele announced last week the country’s plan to construct a “Bitcoin City”, using a $1Bn volcano bond. According to Bukele, about $500M will be allocated to building mining facilities while the other half will be used to buy BTC.
Despite the results, over 70% of El Salvadorans are still displeased with the country adopting Bitcoin, citing that Bukele didn’t think it through thoroughly before signing the bill into law. The plummeting prices on the day of announcement as legal tender did nothing to calm their nerves down, as many engaged in anti-bitcoin protests.
Adding the current BTC purchase, El Salvador now has a total of 1220 BTC, with its wallet in the green.
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