El Salvador Snaps Up Another $1.5M in Bitcoin, but Sits Heavily in the Red

El Salvador bought yet another bitcoin dip, thereby accumulating in the cryptoasset after a market crash that led to sharp drops in its value.

President Nayib Bukele stated that 80 bitcoin were purchased by the country for $19,000 and are worth approximately $1.5 million. He wrote, tweet: “Thank you for selling low,” and included screenshots of transactions.

It purchased 500 bitcoin for an average of $30,744 each. This brought its total bitcoin holdings to 2,301 Bitcoins. That’s roughly $71.4 Million. According to Twitter updates by Bukele, El Salvador now has 2,381 bitcoin, worth $46.4 million.

El Salvador’s president has once again tried to “buy the dip”, this time because bearish sentiment from hawkish central bankers and a series major cryptocurrency firm collapses have caused prices to trade near their 2017 highs.

Bukele stated that he trades the country’s Bitcoin via his mobile phone. According to the Nayib Bukele Portfolio tracker website his first bitcoin purchases were made in September 2021 when bitcoin was trading for $52,000. He hasn’t displayed a penchant for market timing. On October 27, 2021 when bitcoin was trading at $60.345, 420 BTC was his second largest bitcoin purchase.

Market turmoil has caused El Salvador to delay the highly anticipated’volcanic bonds’, which were due to be issued by March 20, but have been delayed. The country’s $1 billion planned bond offering will be used to finance its ‘bitcoin-city’, a community located at the base the Conchagua volcanic.

Some industry commentators think the bottom is near. JPMorgan analysts stated in a note Wednesday that the deleveraging that caused the crypto crash may not continue and pointed to the strong venture capital funding of the industry as a positive sign.

Blockworks was informed by Chris Terry, a board member and vice-president at SmartFi lending platform, that he believes there is a ‘weak’ bottom to bitcoin. He said that he believes we may be seeing a bottom in the $20K area.

“If bitcoin had fallen to the low teens at $12-14K, it would make me feel more positive about it. That would have been a bottom I could trust. ‘

Wave Financial co-founder Les Borsai echoed this sentiment. He stated that most of the potential sellers had already sold and so you will be left with long-term owners and many interested buyers.

El Salvador’s president has indicated that he wants his country to keep its bitcoin purchases. Alejandro Zelaya , Finance Minister, dismissed concerns that bitcoin’s fall in value could have an impact on the country’s fiscal well-being. He said the risk was ‘extremely low’.

The nation’s total BTC portfolio has fallen to $60 million, or 57%.