El Salvador’s President Nayib Bukele announced that the country has purchased an additional 80 BTC, resulting in a total treasury of 2,381 BTC valued at around $46.1 million.
El Salvador bought the dip and acquired 80 BTC at an average price of $19,000. Two days ago, MicroStrategy also bought the drop worth 480 BTC. Nation-states and institutions remain dollar-averaged while a contagion effect upsets a rocky bear market.
President Nayib Bukele of El Salvador announced last night that the country bought the dip with another 80 BTC added to the national treasury for an average cost of $19,000.
In total, El Salvador has a total bitcoin hoard of 2,381 BTC, currently valued at around $46.1 million. The nation-state has been slowly accumulating bitcoin since its first bitcoin purchase on September 6, 2021, when it purchased 200 BTC and became the first country in the world to hold bitcoin on its balance sheet three months after declaring bitcoin currency.
Lately, Bitcoin and the cryptocurrency ecosystem in general have witnessed what is known as “contagion” in which cascading failures of one institution mixed with another amid market corrections. Due to this effect, institutional and state holders in the bitcoin ecosystem have come under scrutiny for continuing to hold bitcoin under the circumstances, with El Salvador being one of the criticized holders.
Likewise, Michael Saylor was interviewed to discuss whether or not he regretted the bitcoin strategy his software analytics company, MicroStrategy, chose to adopt. In light of Bukele, however, Saylor continues to buy on the downside and remains steadfast in the spirit of dollar cost averaging: the continuous accumulation of an asset over time, regardless of price.
As prominent figures like Bukele and Saylor continue to accumulate large amounts of bitcoin over time, they will continue to be criticized when the price fails to rise. However, the important thing to note is that they are not trading bitcoins. If the goal was to buy and sell bitcoins in a short period of time, criticize the bad timing. But as things stand, El Salvador and MicroStrategy clearly continue to look at a longer time horizon than is generally believed.