El Salvador Bought Yet Another Dip, Total Reserve Reaches 1801 Bitcoins

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El Salvador Bought Yet Another Dip, Total Reserve Reaches 1801 Bitcoins

Image from @TheBitcoinConf

Presidente de El Salvador, Nayib Bukele, announced on Twitter that El Salvador bought another 410 Bitcoins for over 15 million USD. He wrote in English: “Some guys are selling really cheap”, referring to bitcoin hitting a six-month low on the day. Judging from all the announcements until now, the Central American country has bought at least 1801 Bitcoins.

According to CoinMarketCap, Bitcoin price fell to $36,630 at 4:54 p.m. local time. Bukele’s announcement was first seen at 5:18 p.m., followed by a continuous price drop over the night.

The announcement on January 21st came as a response to his previous tweet, saying that “I think I might have miss the dip this time.” He responded to himself “Nope, I was wrong, didn’t miss it.”

We mainly learn El Salvador’s Bitcoin reserve by Bukele’s Twitter announcements, which often involves the words “buy” and “dip”, as well as their inflections. But the strategy is simple: buying Bitcoins low to create profits when the price goes up again.

On January 12th Bloomberg’s news report says El Salvador has already spent $73 million into its Bitcoin campaign by then. The total now adds up to around $88 million.

Image from BloomBerg

According to Bukele’s tweets, El Salvador’s Bitcoin reserve details are as follows:

Total reserve: 1801 BTC Jan 21st, 2022–410 BTC (USD purchase value around 15 million) Dec 21st, 2021–21 BTC Dec 4th, 2021–150 BTC (Bought at the price of 48670 USD) Nov 26th, 2021–100 BTC Oct 27th, 2021–420 BTC Sept 19th, 2021–150 BTC Sept 7th, 2021–150 BTC Sept 6th, 2021–200 BTC (Second purchase on the day) Sept 6th, 2021–200 BTC (First purchase on the day)

Though Bukele seems optimistic on Twitter, Salvadorans and industry analysts have put a question mark on how the country is purchasing Bitcoins, not only because of the slump market but also because of some inappropriate comments posted by Bukele on social media. For example, on 4th December, 2021, Bukele tweeted “Missed the f***ing bottom by 7 minutes”. On the same day, he revealed the fact that he is trading Bitcoin on his phone. When Bloomberg mentioned on Twitter that Bukele trades Bitcoin using his phone, he responded with one word: “naked.”

It’s quite understandable that people, especially Salvadorans, want to know when and how Bukele decides to buy Bitcoin. Earlier this month, Alejandro Zelaya, Minister of Finance de El Salvador, mentioned the existence of a dedicated Bitcoin trading team on a local interview program Frente a Frente.

Alejandro Zelaya on Frente a Frente

When asked what method the government has been taking towards Bitcoin investment, Zelaya answered: “(…) ha habido trading entonces hay un equipo que es el equipo de chivo el que está (…) claro que hay uso de tecnología y claro que hay uso de procedimientos. (There has been trading so there is a team. Of course there is use of technology and of course there is use of procedures)” However, no further details were disclosed.

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