The crypto trading industry is in a sell-off crisis after the Fed’s rate move. Some investors regard the price drop as a significant savings for accumulation and top-up packs. Amid a bitcoin market drip, El Salvador’s President, Nayib Bukele, announced on Twitter on May 9 that his country has purchased 500 more bitcoins. He stated, “El Salvador has just purchased the dip! 500 coins at an average USD price of $30,744.”
El Salvador just bought the dip! 🇸🇻
500 coins at an average USD price of ~$30,744 🥳#Bitcoin
— Nayib Bukele (@nayibbukele) May 9, 2022
Market slumps, often known as bear markets, are a source of fear for many traders. The price drop, on the other hand, is typically considered a lost cause by investors who believe in Bitcoin’s future potential as a significant financial asset. However, some saw the market slump as an opportunity. Nayib Bukele, El Salvador’s President, is one such investor. With this new buy of 500 bitcoins amid the market dip, the country now possesses a total of 2,301 bitcoins worth $71.7 million, making it one of Central and Latin America’s most encrypted countries.
El Salvador plans to issue bitcoin bonds as well, though no exact timetable has been set. El Salvador’s Treasury Minister, Alejandro Zelaya, said in an interview that market conditions and the Russia-Ukraine war influenced bond issuance. He emphasised:
“We’re waiting for the perfect time, and the president will let us know when… It depends on the state of the market.”
Some economists have criticised El Salvador for continuing to amass bitcoin. They believe Bitcoin is a bubble, and that investing national reserves in it is risky.
According to the International Monetary Fund (IMF), the danger of this significant digital currency’s volatility cannot be mitigated. The IMF remarked:
“Given the high price volatility of bitcoin, its use as legal tender presents significant risks to consumer protection, financial integrity and financial stability.”
The IMF recommends that the Chivo wallet be further enhanced to ensure that user’s USD and Bitcoin are appropriately protected. Chivo Wallet aspires to be a functional wallet for the country’s Bitcoin-based economy.
Read more:
- Qredo receives nod from El Salvador’s Central Bank over regulation
- El Salvador’s govt Bitcoin wallet gets success in its adoption
