Nayib Bukele, El Salvador’s president, said the country purchased 410 bitcoin worth $15 million as the cryptocurrency’s price plummeted.
“El Salvador just bought 410 #bitcoin for only 15 million dollars,” the president tweeted on Friday. He pointed to the crypto selloff, saying that some people were selling at a bargain price.
In September, Bukele, whose country was the first to legalize bitcoin, said he “didn’t miss” the sell-off that hit cryptocurrency prices hard in January.
Recent price plunges in bitcoins have coincided with a sharp retreat in investor risk appetite, which has affected the more valuable stock markets, such as technology stocks. Over the last week, bitcoin has fallen by 20% and this month by 28%. In November, it reached an all-time high of $69,000, but has fallen by nearly 50% since.
As the Federal Reserve fights off a rapid rise in consumer inflation and wages, it plans to reduce the support it gave to the economy during the pandemic. Following Bukele’s announcement, bitcoin prices continued to fall. On Monday, it traded at $33,600, about its lowest for six months.
El Salvador now holds more than 1,500 bitcoins after its purchase on Friday, CoinDesk reports. The country is planning to issue a $1 billion, 10-year bond in the coming months.
El Salvador’s president, who is a well-known crypto enthusiast, is known for buying dips, including after bitcoin dropped 7.7% on 26 November 2021. El Salvador bought 100 bitcoins at that time.
