El Salvador Buys the Bitcoin Dip, adds 150 BTC to its Reserve
El Salvador made history as the first country to make BTC legal tender. They bought the dip on September 7 when Bitcoin prices crashed and bought even more on September 20.
Announcing their ramp-up, President Bukele said the country now holds 700 BTC or slightly over $32 million, an encouraging move, signaling confidence in the coin's long-term prospects. However, this has done nothing to stop the bleeding at the time of writing, and sellers are in a commanding position reading from price action in the daily chart.
El Salvador is taking its chances on Bitcoin despite warning from the International Monetary Fund (IMF). With BTC in the picture, the country's credit rating has also taken a hit. Economists say the integration of 'untested' BTC reduces their chances of securing a $1 billion loan from the IMF. There are also protests in the country, with some more opposing the move.
Nonetheless, there are perks for companies who invest in the country, keen on strengthening blockchain's infrastructure. Already, El Salvador has one of the most extensive networks of ATMs as its leaders look to use Bitcoin's borderless nature as a reliable remittance vehicle.