El Salvador Buys the Dip for another 500 Bitcoins

The crypto trading world is in a sell-off panic due to the Fed’s rate hike. However, some see the price slump as a major discount for accumulation and top-up packs.

One of the active investors is El Salvador, where President Nayib Bukele announced Monday that the government bought just 500 bitcoins at an average price of $30,744, spending about $15.5 million.

El Salvador is the first country in the world to accept Bitcoin (BTC) as a legal tender back in September 2021.

With this latest purchase, the country now holds a total of 2,301 bitcoins worth around $71.7 million, Continuously being one of the most encrypted countries in Central and Latin America.

For many, periods of the market slumps, otherwise known as bear markets, are times of concern for most traders. However, for investors who believe in Bitcoin’s future potential as a valuable investment asset, the price crash is often seen as a lost cause.

El Salvador continues to accumulate bitcoin, drawing criticism from some economists. They believe that Bitcoin is a bubble and it is unwise to put national reserves in it.

The International Monetary Fund (IMF) suggests the volatility risk of this major digital currency cannot be reduced. “Given the high price volatility of bitcoin, its use as legal tender presents significant risks to consumer protection, financial integrity and financial stability.

The IMF advocates that the Chivo wallet should be further developed to adequately protect users’ USD and Bitcoin funds. Chivo Wallet aims to provide an operational wallet for the country's Bitcoin-driven.