El Salvador President Nayib Bukele took to Twitter to announce that the country had added 420 more BTC during the dip, pushing up the total BTC under management to 1120.
Buying The Dip
Being a Bitcoin maximalist, the president announced the purchase via Twitter, announcing that he had “bought the dip!” Buying the dip refers to taking advantage of prevailing bearish sentiment in the market, buying the asset when the price is down, and then profiting once the price recovers.
El Salvador’s president revealed that the country had bought 420 more Bitcoin, a figure seen as a nod to meme culture.
“It was a long wait, but worth it. We just bought the dip! 420 new #Bitcoin”
With the purchase, El Salvador now has 1120 BTC under its management and would look to add more in the near future.
Investment Already Profitable
While there is no way to audit the government’s wallet, if sources are to be believed, then the investment is already paying dividends, as barely a few hours after announcing the investment, the president took to Twitter again to talk about the return from the investment stating,
"We’re already making a profit from the #bitcoin we just bought."
If the profits are true, the Bukele has timed his investment perfectly, essentially buying the dip of the dip. Furthermore, Bukele revealed that due to the rebalancing of the accounts of the Bitcoin trust, he could cash out in USD when the Bitcoin price goes up.
Rebalancing of accounts has allowed el Salvador and Bukele to benefit, funding public projects through the rising prices. One example of this would be the announcement regarding the construction of a veterinary hospital funded entirely by profits generated from the Bitcoin Trust.
1120 BTC Under Management
Despite his authoritarian tendencies, the president of El Salvador is an extremely popular figure in the Bitcoin community. He is often mentioned by Bitcoin maximalists such as Michael Saylor and has an approval rating of 80%.
However, a significant chunk of the population in El Salvador is not exactly pleased with the adoption of Bitcoin as legal tender, describing the move as “unwise,” and the haste of implementation of the country’s Bitcoin policy drew several protests.
However, despite all this and a loss of over$11 million, El Salvador’s BTC wallet has made a profit of $5 million thanks to Bitcoin’s new all-time high.
Not The First Time Buying The Dip
This is not the first time that El Salvador has bought the dip. In September 2021, the country had purchased an additional 150 BTC, which took the total number of BTC under management to 700.
Before this, El Salvador had bought 550 BTC in multiple separate buying sprees. In addition, Bukele has adopted an aggressive approach to Bitcoin and regularly purchases them every time the price drops.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.