The price of Bitcoin was hit today by a sharp volatility when its price dropped to about $42,700. El Salvador bought a pair of BTCs cheaper.
Bitcoin falls on the day El Salvador upgrades it to the national currency
Volatility has returned to the cryptocurrency market in the “buy the rumor, sell the fact” scenario. This is what Bitcoin looks like today, which has just become the official currency in El Salvador.
It is now not possible to determine what impact the situation will have on the confidence and acceptance of Bitcoin by people in the country who allegedly, in many cases, did not agree with the government’s actions.
After local Bitcoin prices hit the peak at $52,800 on Monday and everything looked good, BTC is down to $42,759 in Tuesday’s trading. El Salvador as such, however, seems to be carefree because President Nayib Bukele bought the dip.
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Bukele thanks the IMF for the cheaper purchase
The president of El Salvador has confirmed that his government has bought a dip. During the deep sale, it adds another 150 BTC to its bitcoin funds.
“Buying a dip. One hundred fifty new coins added”, says Bukele.
El Salvador allegedly bought cheaper thanks to IMF intervention, which Bukele blames today’s declines in cryptocurrency bourses. Minutes after the “buy-the-dip” tweet, Bukele said the bitcoin “discount is ending.” He also thanked the International Monetary Fund (IMF) for helping the country “save a million in the printed paper”.
According to the president, El Salvador saved in the purchase of Bitcoin by his government today because the IMF has some fingers in the current sharp decline. The IMF has previously spoken out against Salvadoran acceptance of bitcoins. Could its warnings or further steps have contributed to a bout of market volatility?
Either way, El Salvador now holds 550 BTC worth about $29 million at current prices.
Todays conclusion on Bitcoin
El Salvador today officially recognized digital currency as legal tender in a move that could have significant implications for global adoption. However, the price of the leading cryptocurrency fell a massive drop of almost ten thousand dollars on the same day.