Buy the Dip. El Salvador applies this strategy and takes advantage of the sudden drop in the price of Bitcoin to supplement the country’s reserves.
Sell higher or simply keep your assets, but especially buy during down cycles. Opportunism and responsiveness are essential in the cryptocurrency market.
El Salvador, which recently legalized Bitcoin, applies the rule to the letter. On October 27, the price of BTC did indeed register a correction. It went down to around $ 57,000.
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Buy before growth returns
Bitcoin’s price is now stable at around $ 59,100. Analysts are confident, assuring that this sudden drop was expected. Such an event has happened several times in the past.
A sudden correction of this magnitude usually occurs after a phase of strong growth. This is precisely what Bitcoin experienced a week earlier. The price of the crypto-asset established a new ATH at nearly $ 67K.
For analysts, the BTC bull run is not called into question by yesterday’s pullback. El Salvador’s finance officials clearly share this forecast. The country took advantage of the fall in the price to buy.
It was the President of El Salvador himself, Nayib Bukele, who was responsible for making this known on social networks. In a tweet in English, the head of state announces the purchase of 420 additional bitcoins.
El Salvador’s reserves thus now count 1.120 BTC. The average price of each token is around $ 53,300, Decrypt says. The South American state made its first Bitcoin purchase on September 6.
1120 bitcoins in the vaults of El Salvador
He then acquired 200 BTC for a price of $ 51,300. A series of other Bitcoin purchases followed. And already in September, the country was buying during a trough. Taking advantage of a fall, El Salvador was spending $ 45,700 per Bitcoin (150 in total).
Very concerned about his image abroad, Nayib Bukele strives through his communication on Twitter to highlight the success of his monetary strategy. Enough to take care of its “anti-system” positioning.
Its policy in favor of Bitcoin is not unanimous in the country, however. And the foreign press is beginning to underline the authoritarian abuses of the President of El Salvador. In the cryptosphere, opinions are equally divided.
Vitalik Buterin, the co-founder of Ethereum, has taken a stand. Far from celebrating the institutionalization of Bitcoin, he denounces a very violation of the principle of crypto. Digital currencies cannot be the subject of an obligation, he argues.
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