El Salvador Buys in Bitcoin Decline
Cryptolite – Neb Bukele, President of El Salvador, announced on Twitter on October 27, 2021 that his country had bought Bitcoin in the latest downturn. El Salvador has added 420 bitcoins worth about $25 million to its bitcoin wallet. “El Salvador Buys On Bitcoin Decline”.
El Salvador scrambled to accumulate bitcoins in September 2021. After becoming the first country in the world to recognize bitcoin as the country’s official currency, its holdings exceeded 400 bitcoins during the first week of September 2021.
El Salvador has added 420 BTC to its Bitcoin portfolio
Bukele stated on Twitter:
“We waited a long time, but it was worth it. We just bought down 420 new bitcoins. And we actually make a profit from the purchased coins. How do we make a profit if 1 BTC = 1 BTC? We have an account with a trust fund denominated in US dollars, but the fund is funded in both US dollars and bitcoin. When we revalue the bitcoin portion against the accounting currency (in US dollars), we are able to withdraw the portion in US dollars and leave the credit the same as the total.”
After reaching an all-time high of $66,000 on October 21, 2021. Bitcoin has seen a correction of almost 10% in the last 7 days. However, it is still trading near $60,000 with a market cap of over $1.1 trillion.
Analysts described the recent decline as a healthy Bitcoin correction after a significant upward movement. Recent data measuring the psychological state indicates that Bitcoin whales believe in long-term price appreciation despite the correction.
It is worth noting that whales are an important trade group to watch, considering their impact on prices. For bitcoin addresses containing between 100 and 10,000 bitcoins, the amount accumulated now continues to rise.
In the past two weeks, whale addresses have added 0.19% of the bitcoin supply to their wallets, instilling a degree of confidence that prices will continue to rise. The group highlighted in its latest report that 49.49% of the Bitcoin supply held is the largest amount held in 8 years.