El Salvador, the Central American country that recently officialized Bitcoin as a legal tender, have again seized the market opportunities by purchasing additional 150 units of BTCs when the asset price plunged on Monday morning. This was revealed by President Nayib Bukele in a tweet.
By estimation, the figure of the new purchase would take the Central American government’s total holding of the asset to around 700 BTC, and at the time of writing, it is worth around $32 million.
We just bought the dip. 150 new coins! El Salvador now holds 700 coins. They can never beat you if you buy the dips. Presidential advice.
Aside from its debut purchase of 200 BTC, subsequent purchases are made during the dip. The first 200 additional units were purchased during the September 7 event when Bitcoin price crashed below $43k, and that coincided with the day the country officialized BTC as a legal tender.
While El Salvador‘s method of Bitcoin adoption got the crypto community wowed, especially as it exempted Bitcoin investors from tax, it is still not problem-free. Aside from the protests against President Nayib Bitcoin law, Global international agencies have warned the Central American country of possible effect.
According to Credit Rating Agency Standard and Poor’s Global, the adoption has immediate negative implications for the country’s credit rating. S&P also noted that the decision would affect El Salvador’s chances of securing a $1 billion loan with the world bank.