El Salvador buys the dip once more, procuring 80 BTC for around $19K each. The transaction was valued at about $1.5 million.
Amidst the continued bear market conditions, the country continues to build its crypto holdings.
El Salvadorian President Nayib Bukele made the announcement on Twitter, thanking the community for selling cheap and reiterating his belief that “Bitcoin is the future!”
The country’s last purchase came on May 9, 2022, when they acquired 500 BTC. On that date, the President stated that the average purchase price was $30,744, with the transaction valued at around $15 million.
El Salvador made headlines last year as well when it became the first nation to make BTC a legal tender within its borders. Since then, the Central American has frequently made purchases during dips.
What This Buy Means for El Salvador
Valued at a total of $1.52 million, this is the 11th crypto transaction, bringing its BTC holdings to 2,381 with an average price of $43,000. Recently, bitcoin managed to tap the $20,000 line once more. This rise in value gives the country a gain of roughly $150,000 within a few hours.
Overall, as far as its BTC investments are concerned, El Salvador is about 57% underwater, with their average BTC price at $45,900.
All of this comes as bitcoin plunged over 70% from the all-time highs tapped in November 2021, meaning it’s seen a 57% drop since President Bukele announced his adoption plans for Bitcoin. This puts the valuation of the government’s crypto reserves at roughly half.
Still, Finance Minister Alejandro Zelaya recently maintained that the adverse conditions of BTC are not likely to harm the fiscal health of the country.
“When they tell me that the fiscal risk for El Salvador because of Bitcoin is really high, the only thing I can do is smile. The fiscal risk is extremely minimal.”
Featured image from Gobierno Danilo Medina