Bitcoin
El Salvador Plans to Boosts Bitcoin Holdings Amid US BTC Sale
President Nayib Bukele hinted at the possibility of El Salvador acquiring Bitcoin at discounted prices following the US government’s decision to sell $6.7 billion worth of Bitcoin.
The US Department of Justice has approved the sale of Bitcoin seized from the Silk Road dark web marketplace.
President Bukele Targets Bitcoin Deals as Prices Dip
The US government recently authorized the sale of 69,370 Bitcoin seized from the infamous Silk Road, notorious for illicit activities. However, a substantial amount of Bitcoin entering the market at once could cause volatility in prices. The volatility might also create buying opportunities for savvy investors.
This is exactly what President Bukele of El Salvador is anticipating. He believes that with the increased supply of Bitcoin in the market, prices could dip, allowing his government to purchase more Bitcoin at a lower price.
“Maybe we’ll all get the chance to buy Bitcoin at a discount,” Bukele wrote on Twitter as he reposted the news on US Bitcoin sale.
Bitcoin was trading at $93,360 at press time, down 2.1% over the past 24 hours. The drop is concerning as Bitcoin crossed $100,000 again just two days ago.
Nevertheless, it appears El Salvador has been buying Bitcoin regularly in the new year. According to the latest data, El Salvador bought over 18 BTC in the past week for $1.71 million, including 11 BTC on January 9 alone.
Since 2021, El Salvador has been a major proponent of Bitcoin, even making it legal tender in the country. The nation has steadily been building its Bitcoin reserves, with its current holdings totaling 6,022 BTC. El Salvador’s BTC holdings are now worth around $557 million.
President Bukele has made it clear that El Salvador’s goal is to continue acquiring more Bitcoin, especially during times when the market presents opportunities for discounted purchases.
Last month, El Salvador amended its Bitcoin Law. This was done as part of an agreement with the International Monetary Fund (IMF) for a $1.4 billion credit facility.
El Salvador said it will make BTC acceptance voluntary rather than mandatory for merchants. The change was made as the IMF was concerned with Bitcoin’s price volatility.
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