Bitcoin lost a fifth of its value on Friday, December 4, as a result of billions of dollars worth of selling across cryptocurrencies, driving trade values down as low as $42,000 (approximately Rs. 31.6 lakh) per token. El Salvador’s President, Nayib Bukele, took advantage of the market situation and acquired 150 bitcoins at a price of $48,670. (roughly Rs 37 lakh). Bukele has bought a large number of Bitcoins at a discount for the second time in the previous two weeks.
Bukele revealed the news on Twitter, saying he was only seven minutes away from the bottom.
El Salvador put a load of 100 Bitcoin to the treasury on November 29. Bitcoin’s price has dropped to $54,377 (approximately Rs. 40 lakh) from its all-time high of $68,327.99 at the moment (roughly Rs. 50.5 lakh).
After the cryptocurrency was legalized as an official currency of El Salvador in September 2021, the government currently possesses about 1,500 Bitcoins in its reserve. According to CoinMarketCap, the Salvadoran treasure includes crypto tokens worth $72 million at the current Bitcoin pricing of $48,000 (approximately Rs. 36 lakh) (roughly Rs. 542 crores).
Bukele has also stepped his attempts to promote Bitcoin-related activities in the country in order to encourage his citizens to embrace the cryptocurrency.
Last month, the 40-year-old Salvadoran President announced plans to establish a Bitcoin City at the foot of the Conchagua volcano in order to fuel Bitcoin mining with renewable energy and reduce the process’ carbon imprint.
Bukele has been aggressive in increasing crypto acceptances and uses cases, from installing Bitcoin ATMs to launching a government-backed Bitcoin wallet for Salvadorans called Chivo.
El Salvador has been chastised for its pro-crypto stance, which comes as numerous other countries, like India, debate the legality and regulation of cryptocurrency.
The International Monetary Fund (IMF) has advised El Salvador to abandon Bitcoin as legal money because of its significant price volatility and associated concerns to consumer protection, financial integrity, and financial stability.
Andrew Bailey, the governor of the Bank of England (BoE), voiced worries over El Salvador’s decision to legalize Bitcoin as a legal tender last week, wondering if Salvadorans are even aware of the hazards they have exposed their funds to.