El Salvador took advantage of the opportunity to buy the dip when Bitcoin’s price retreated to $45,000 following a high week.
Despite global agencies’ warnings about El Salvador’s embrace of Bitcoin (BTC), the government continues to grab business opportunities.
On Monday morning, after Bitcoin went below $46,000, Salvadoran President Nayib Bukele stated on Twitter that his country had “purchased the dip.” With the addition of 150 new coins, the Central American government now owns 700 BTC, which is currently worth close to $32 million.
In a clear homage to the numerous “not financial advice” labels shown throughout the crypto ecosystem, Bukele provided his “presidential advice” by stating, “They can never beat you if you buy the dips.”
El Salvador purchased another plunge on the day Bitcoin became legal tender in the country, following a flash crash to below $43,000.
El Salvador’s step toward adoption sparked excitement in the crypto community, particularly in light of the possibility of tax exemption for Bitcoin investors. However, the government’s decision to use Bitcoin as legal cash does not come without consequences.
Apart from protests and marches against the government’s Bitcoin adoption, Standard and Poor’s Global stated that the action “has immediate negative repercussions” for the country’s credit rating. Additionally, S&P asserted that the decision would jeopardize El Salvador’s chances of obtaining a $1 billion loan from the International Monetary Fund.
El Salvador made history on Sept. 7 when it became the first country to recognize Bitcoin as legal cash. At the time, the government possessed 400 BTC. El Salvador increased its Bitcoin holdings to 700 BTC by taking advantage of two market falls in two weeks and bought 150 coins each time.
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