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As Bitcoin’s Price Dips Below $50K, El Salvador Acquires an Additional 150 BTC

As Bitcoin’s Price Dips Below $50K, El Salvador Acquires an Additional 150 BTC

Bitcoin has experienced what some investors call a “flash crash” - having climbed up to almost $68,000, the price of the cryptocurrency asset plummeted to a low of $42,000 in a matter of days.

This crash is attributed to a few different reasons, such as whales moving their BTC from their personal wallets to exchanges, tech stocks experiencing a downfall, and derivative trading losses. However, while speculations for the reasoning behind this sudden price downfall rose, El Salvador “bought the dip”.

Specifically, the country acquired 150 BTC, at an average price of $48,670. This equates to around $7,300,500 being spent on Bitcoin. The news was announced by the president of El Salvador, on his official Twitter profile on the 4th of December, 2021.

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This news didn’t come as a surprise to many, though, since the government of El Salvador has been slowly purchasing BTC throughout the year. At the time of writing this, the country has acquired around 1,270 Bitcoins.

Not only that, but El Salvador has seemingly been purchasing BTC whenever there’s a more-noticeable dip happening in the market. This capitalization on bearish market sentiments has allowed the country to amass Bitcoin worth over $60 million, and counting.

It’s worth mentioning that many industry experts both were, and are critical of El Salvador’s decision to name Bitcoin as legal tender. There are varying opinions on what impact this will have on the country’s economy, long-term, especially given the huge volatility aspects of the coin in question.

The government of El Salvador, however, appears to be adamant on their decision. As of writing this, the country is organizing a project called theBitcoin City. This project revolves around digital education, public transport improvements, and geothermal energy.

The Bitcoin City project was initially funded by Bitcoin bonds. Specifically, $1 billion worth of bonds. This is part of the government’s plan to cash out certain amounts of BTC for USD, in order to develop and manage the infrastructure of the country, as well as create new and intriguing projects.

Some parts of the withdrawn funds will remain in El Salvador's reserve, while other parts will be used for the development of the aforementioned projects. Once again, though, experts warn against placing all of the trust in the idea that Bitcoin will only rise in price. The opposite can be argued, too, especially when you take a look at the historical price charts of the asset.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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