Since El Salvador made Bitcoin (BTC) a legal tender on September 7, a sort of new tradition has been established in the country. Indeed, every time the BTC price experiences a correction, the Salvadoran Treasury starts buying the market low, or in other words, “Buy the Dip”.
El Salvador takes advantage of every dip to buy Bitcoin
Since the Ley Bitcoin went into effect on September 7, 2021, Salvadorans now have Bitcoin as their new national currency, alongside the US dollar.
But the government is not content with having established the king of crypto-currencies as legal tender, and is building up a stockpile of it that grows with each decrease in BTC prices. This new kind of “tradition” actually started as early as the correction that occurred on September 7 itself: the Salvadoran Treasury had then taken advantage of a BTC low of $42,000 to buy 150 more units.
El Salvador’s President Nayib Bukele announced that his nation had once again taken advantage of the latest price drop on this Friday, November 26, 2021, to buy “the sale” on BTC from this rather bloody Black Friday, both in the crypto market and the stock market for that matter.
“El Salvador just bought the dip [market low]. 100 more bitcoins obtained with a discount.”
A Salvadoran war chest of 1,220 BTC
A rather well-placed purchase if we look at the situation at the time of writing, since after having fallen to around $54,000 last Friday, Bitcoin is already back towards $58,000 again – that’s almost +7% just 3 days later (Monday, November 29).
With this 4th Buy the Dip of 100 bitcoins, the Central American country now has a nice jackpot of 1,220 bitcoins, a total value of over $70 million at the current price.
This strategy of El Salvador, to buy the low points of the BTC market, seems in any case systematic so far. And it could probably be destined to continue, at least as long as the crypto-asset market remains bullish on long-term horizons.
This is a good reason for President Bukele to make a thunderous announcement about building a real “Bitcoin City”. For if El Salvador confirms its ambitions on the mining of BTC thanks to the geothermal energy of volcanoes, the small Latin American country seems to have a bright future.