El Salvador Bought the Bitcoin Dip

Nayib Bukele, the President of El Salvador, recently announced on Twitter that the country has purchased the latest Bitcoin dip. El Salvador added 420 Bitcoin worth approximately $25 million to its BTC portfolio.

El Salvador accelerated its BTC accumulation in September 2021. After becoming the world’s first country to recognize Bitcoin as a legal tender in the country, El Salvador’s BTC holdings crossed 400 coins during the first week of September 2021. According to Bukele, the country has made significant profits on its BTC holdings.

“It was a long wait, but worth it. We just bought the dip. 420 new Bitcoin. We’re already making a profit from the bitcoin we just bought. How do we make a profit if 1 BTC= 1 BTC? We have a trust fund account in USD, but the trust is funded by both USD and BTC. When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total,” Bukele mentioned on Twitter.

Bitcoin Dip

After reaching an all-time high of $66,000 on 21 October 2021. BTC saw a correction of approximately 10% in the last 7 days. However, the crypto asset is still trading near $60,000 with a market cap of over $1.1 trillion. Analysts termed the latest dip a ‘healthy correction’ for BTC after a significant bullish move. The recent data from Santiment indicates that Bitcoin whales believe in long-term price growth of the digital asset despite the correction.

“Whales are always an important trading group to keep an eye on, considering their influence on prices. For Bitcoin’s addresses holding between 100 to 10,000 BTC, the amount being accumulated right now continues to edge up. In the past two weeks, these whale addresses have added 0.19% of BTC’s supply to their wallets, instilling a degree of confidence that prices will continue to rise. Their 49.49% of Bitcoin’s supply held is the largest amount held in 8 years,” the company highlighted in its recent report.

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