The global crypto market has continued to stay bearish; some investors have remained bullish. One of these is the state of El Salvador, which has gone for the purchase of digital assets. It has gone a step further as it made Bitcoin a legal tender. As the market continues to bearish, its impacts have continued on investors. The inmates of this state have also expressed fears because of the ongoing situation.
In contrast, the mentioned state has gone for further purchases in contrast to reducing its investments. The market crash has resulted in the loss of more than 2 trillion to the market. There are more than two thousand BTC in possession of El Salvador. As its current spending continues, it will bring further to this state.
Here is a brief overview of El Salvador’s BTC obsession and how it has gone for hoarding further coins.
Bitcoin dips, and El Salvador’s obsession
El Salvador has proved to be one of the most advanced states regarding purchasing cryptocurrencies and digital assets. It not only went further regarding legislation but also brought ease to the investors. It has also planned the construction of Bitcoin city, which was delayed due to a bearish market. It was a result of these losses that this state suffered financial losses. It was looking for a bailout package from IMF where the latter questioned its crypto-obsessive policies.
Their frequent purchase of Bitcoin happens during the bearish situation in the market. The president of El Salvador, Nayeb Bukele, announced in a tweet that they intend to utilize the ongoing market situation. As it happens, it would result in the addition of further BTC to their national stash. Their stance has been the promising future of Bitcoin, even though its price value has seen drops. Their point is that purchasing these digital assets will benefit investors shortly.
There is no doubt about the future of digital assets, but the current untoward situation seems to affect the investments as their value might be reduced.
New purchase of Bitcoin
El Salvador’s president Nayeb Bukele said in a statement on Twitter that they have purchased eighty more Bitcoin. They have purchased each BTC for 19,000 dollars. He said BTC is the future and expressed his happiness about purchasing it cheaply. The current low valuation of Bitcoin will help strengthen the national economy in the longer run. According to the official estimates, El Salvador’s BTC stash’s current stash has reached 2381.
El Salvador has paid more than $105 million on the purchase of BTC. The current bearish market has brought the value of these assets to $60 million. If the bearishness continues further, it will impact the investments in the coming days.
According to their finance minister, the ongoing bearish market would not impact their national economy. It is yet to be seen what will be the impacts of the bearish market on El Salvador’s national economy. If the value of BTC lowers further, it will impact their current stash of Bitcoin. Even though some countries have gone for lowering their investments, El Salvador’s obsession continues. If the market sees a rise, it will greatly benefit their investments.
El Salvador has continued to invest in digital assets, especially BTC. Even though the market situation has remained unfavorable, their key decision-makers have continued to spend on new purchases. The current purchase of Bitcoin has resulted in adding 80 Bitcoin to its stash. It is yet unsure how this investment will result for the mentioned state.