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El Salvador’s President Nayib Bukele views the upcoming US Bitcoin sale as a strategic opportunity to enhance the country’s BTC reserves at a discount.
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The US Department of Justice’s approval to sell 69,370 seized BTC could potentially disrupt the market and lead to lower prices.
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“Maybe we’ll all get the chance to buy Bitcoin at a discount,” Bukele shared on Twitter, reflecting on the recent market developments.
El Salvador aims to capitalize on potential Bitcoin price dips due to US market actions, with a recent purchase of 18 BTC to strengthen its position.
President Bukele Targets Bitcoin Deals as Prices Dip
The US government recently authorized the sale of 69,370 Bitcoin seized from the infamous Silk Road, notorious for illicit activities. However, a substantial amount of Bitcoin entering the market at once could cause volatility in prices. The volatility might also create buying opportunities for savvy investors.
This is exactly what President Bukele of El Salvador is anticipating. He believes that with the increased supply of Bitcoin in the market, prices could dip, allowing his government to purchase more Bitcoin at a lower price.
“Maybe we’ll all get the chance to buy Bitcoin at a discount,” Bukele wrote on Twitter as he reposted the news on the US Bitcoin sale.
Bitcoin was trading at $93,360 at press time, down 2.1% over the past 24 hours. The drop is concerning as Bitcoin crossed $100,000 again just two days ago.
Nevertheless, it appears El Salvador has been buying Bitcoin regularly in the new year. According to the latest data, El Salvador bought over 18 BTC in the past week for $1.71 million, including 11 BTC on January 9 alone.
Since 2021, El Salvador has been a major proponent of Bitcoin, even making it legal tender in the country. The nation has steadily been building its Bitcoin reserves, with its current holdings totaling 6,022 BTC. El Salvador’s BTC holdings are now worth around $557 million.
President Bukele has made it clear that El Salvador’s goal is to continue acquiring more Bitcoin, especially during times when the market presents opportunities for discounted purchases.
Last month, El Salvador amended its Bitcoin Law. This was done as part of an agreement with the International Monetary Fund (IMF) for a $1.4 billion credit facility.
El Salvador said it will make BTC acceptance voluntary rather than mandatory for merchants. The change was made as the IMF was concerned with Bitcoin’s price volatility.
Conclusion
El Salvador’s strategic focus on Bitcoin accumulation amidst fluctuating market conditions positions the nation as a key player in the cryptocurrency landscape. With President Bukele’s proactive approach, the country aims to leverage potential discounts and further solidify its Bitcoin holdings, emphasizing a long-term vision for national growth in the digital asset space.
