Despite the recent price drop in the Bitcoin market, there is no shortage of buyers looking to go long on the cryptocurrency. As prices moved below $54k, the government of El Salvador jumped into action and purchased almost 100 BTC ($5.3 million) during this dip. El Salvador is the first sovereign nation in the world to declare Bitcoin as a legal tender and has sped up the purchase of the crypto in recent times officially.
Bitcoin dropped its value close to the Black Friday, mimicking previous price movements in years before. This is the time when there are considerable discounts on outlets and big stores around the world, thus making a case for some short-term liquidations. The price hit as low as $53.2k at one point before rebounding later on. At press time it is trading at $55k, which is around 20% less than its all time high of $69k recorded at the start of this month.
El Salvador is becoming a sizable player in the crypto markets on its own. Here is what the president tweeted:
El Salvador just bought the dip.
100 extra coins acquired with a discount #Bitcoin
— Nayib Bukele (@nayibbukele) November 26, 2021
Under Bukele, El Salvador is looking to become a crypto haven and bring major investments from around the world. He has announced the construction of a mega project called Bitcoin City which he wants to fund through official Bitcoin bonds. The pro-crypto government is also purchasing BTC whenever it feels the time is right. Its first publicly announced purchase was back in September when 200 BTC were bought at a price level of $52k. Now another purchase around similar levels have been okayed by the government. Overall, the small Central American state now owns a considerable 1,120 BTC ($60 million). The ruling party has also announced the development and deployment of a native crypto app called Chivo.
However, the government is going too fast in its Bitcoin adoption and it an inconvenient time as the bull market isn’t going to last for a long time. So, it might have to make tough decisions in the near future and will have to keep working hard to keep the public engaged especially in a long-term bearish scenario. The developmental efforts of Chivo have also seen several issues and its release was delayed several times. So, while the efforts are indeed commendable, the country needs to step up its game and preserve the bear market whenever it starts in the future. If it can sustain this adoption, it will have a head start on the rest of the world be starting this useful trend.
Image Source: pixabay.com
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