El Salvador's Central Bank Bought the Bitcoin Dip
It has been a bit of a roller coaster for crypto and Bitcoin holders in the last trading day.
El Salvador made history when it passed a law making Bitcoin legal tender. The private cryptocurrency is now money in the Central American country.
What's more, Nayib Bukele's government bought 550 BTC when Bitcoin temporarily sunk to as low as $43.5k on September 7. It is the first time in the history of cryptocurrency that a sovereign state has publicly declared its Bitcoin holding.
The news coinciding with the crypto dip was a chance for traders to double down, taking advantage of the "brief discount" to load.
In El Salvador's case, the government is reiterating their confidence in Bitcoin, leading the way for El Salvadorans following the legalization of Bitcoin.
It is yet to be clarified who custody the 550 BTC for El Salvador. Even so, regardless of the ownership style—which is most likely an approved custodian since Bukele had earlier revealed that their brokers were scooping BTC from as early as September 6—it is a massive vote of confidence for BTC and crypto as an emerging class.
As analysts reiterate, this could cause a massive ripple effect across South America, even Africa, as an overhaul of the financial system happens in real-time.