By Shelly Melancon (Switzerland)
Amidst the recent dip in BTC prices, El Salvador President Nayib Bukele has taken advantage of the opportunity to purchase more BTC. On Monday, the president announced the purchase of 150 bitcoins, reportedly estimated at $6.8M. The president, a bitcoin enthusiast, took to his Twitter page to announce the news while also encouraging his fellow countrymen to buy the dip.
The Central American nation now has 700 BTC in its possession after the recent purchase. The country initially acquired 400 coins on September 7, when it decided to adopt the flagship coin as legal tender controversially. Before that, the nation’s Congress signed the establishment of a $150M Bitcoin Fund.
After the adoption of BTC as one of the nation’s legal tender, disgruntled citizens criticized the move by the government. Many businesses vowed not to accept Bitcoin payments. However, Javier Argueta, the government’s legal advisor, warned that any business indulging in such acts would be sanctioned under the Consumer Protection Law.
Bitcoin Price Slips Unexpectedly
In the early hours of today, the famous crypto slipped from $47k to $45k on the Bitstamp exchange. The recent dip coincides with Hong Kong’s when the Hang Seng index fell 4% due to the Evergrande contagion dilemma. The recent drop also resulted in a decline in market capitalization, with many investors recording losses on their investments.
Also read:This recent drip follows the impressive movements of Bitcoin in the market. According to the on-chain data on tradingview.com, BTC was expected to rise past the $47k level, which various experts consider as the strong support before it explodes to the $50k mark. The current price surprised some analysts. However, other on-chain data revealed several spikes of supply on crypto platforms, which experts suspect could be the reason for the decline.
Bitcoin wasn’t the only crypto that crashed. Altcoins like Cardano and Ethereum dropped 9% and 10% respectively, resulting in big liquidations. Generally, the market witnessed a downward movement of around 6.5% on the two biggest cryptocurrency pairs, BTC and ETH. The long/short ratio hovered 98% for longs, suggesting an ‘overbought’ scenario. Relative Strength Index also confirms that the market is overheating with overbought values.
Despite the several on-chain data from indicators, experts are positive that the bull market hasn’t diminished and that the bears will dwindle soon. For instance, exchange inflows predict that the current dip is short-term and that there’s no pressure on the market to sell.
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