As the value of Bitcoin dropped to the $30,000 mark, El Salvador made a purchase of 500 more Bitcoins for a total price of $15.5 million.
El Salvador Builds Up BTC Reserves
President Nayib Bukele is quite determined to build up the country’s crypto reserves. Most recently, following the drop in prices of the premium cryptocurrency, he has added 500 more BTCs to the country’s balance sheet. Bukele has been taking every opportunity to add Bitcoin to his country’s reserves ever since El Salvador legitimized the crypto. However, the latest purchase is the largest in terms of the number of tokens bought by the Latin American country.
In the 24 hours leading up to the purchase, BTC saw an 8% drop in prices. The plunge seems even more drastic (almost 55%) compared to its all-time high from last November.
President Bukele has pegged his presidential achievements to this crypto ever since leading the charge of BTC legalization in his country nine months ago. El Salvador purchased 500 BTCs at $30,744 each, bringing the total Bitcoin reserve of the country up to 2301, which amounts to around $71.7 million. The country last purchased Bitcoin in January, when it bought 410 Bitcoin for an average price of $36,585.
Support From International Figures
El Salvador’s crypto journey has been critiqued by many, especially when the market has been on a downward slope like now. Leading financial institutions like the International Monetary Fund (IMF) have even urged the country’s authorities to reverse its Bitcoin law and renege on the legalization of the crypto.
On the other hand, plenty of international investors have flocked to the Latin American country since the BTC legalization, boosting its tourism sector. Several entrepreneurs and prominent institutions have also spoken out in support of Bitcoin and El Salvador’s decision to legalize it, even in light of a market downturn.
Business tycoon Mark Cuban, who has always been a strong voice for crypto, recently noted that the recent slump in the industry is equivalent to the dot com bubble burst of the early 2000s. He believes that although the initial fad about cryptocurrencies and blockchain is drawing to a close, the technology behind it all will find a new life through business applications. Following in El Salvador’s footsteps, several other smaller nations are preparing to adopt crypto on different scales.
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.