El Salvador added another 150 BTC to its reserves following a crash in the market. This purchase now brings the Central American nation’s Bitcoin holdings to 700 BTC or $30.2 million. El Salvador bought the major crypto when it was changing hands at $45,700. However, the price of Bitcoin dropped by a further $2,000 since the time of the purchase. This represents a 7.3% price drop within 24 hours.
El Salvador president, Nayib Bukele, first made the announcement on Twitter, on Monday. Bukele posted:
“We just bought the dip. 150 new coins! El Salvador now holds 700 coins. #Bitcoin??”
El Salvador first started buying BTC in early September, going on an initial $21 million crypto buying spree. Furthermore, Bukele still maintains that the country’s decision to invest in crypto is a sound one. He added that his country bought at the best time – during the price fall, suggesting that price would eventually rebound. “They can never beat you if you buy the dips,” Bukele joked.
On Monday, the entire crypto market lost over $200 billion, plausibly due to spillovers from the traditional market. Furthermore, there are speculations surrounding the implosion of the Chinese real estate market. Evergrande, China’s second-largest property developer is currently in a $300-billion-dollar debt. This year, the company has lost over 85% in share price and has sent shockwaves across the entire Chinese equity market.
Despite concerns that the situation in China will crossover to global equity and crypto markets, a few beg to differ. Mira Christanto, senior research analyst at Messari, belongs to the latter category. In a Twitter post she said:
“Evergrande FUD: What the China property market really looks like, what the CCP does and how it impacts #crypto. Let’s deal with facts.”
1st we look at the sector and how leverage compares among the top 30 stocks. #Evergrande isn’t even at the top.”
Image Credits: Pixabay
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