El Salvador Snatches Up More Bitcoin At A Massive Discount As Its BTC Stash Expands

El Salvador: Millions Of People Move to "Buy $30 Of Bitcoin" - But This Could Backfire

President Nayib Bukele announced on Friday his country’s latest purchase of 100 BTC as Bitcoin’s price nosedived to levels last seen in October.

“El Salvador just bought the dip. 100 extra coins acquired with a discount” He tweeted.

Although Bukele did not confirm where the funds used in the purchase came from, last week his government announced that it will be allocating $500 million which is half of a $1 Billion tokenized bond created with the help of  Blockstream to purchase more Bitcoin.

Interestingly, the latest purchase coincided with “Black Friday”, a day which normally follows the Thanksgiving holiday in the U.S. and is traditionally seen as “marking the start of Christmas shopping”.

This is the fifth time that El Salvador is making a purchase even as Bukele’s appetite for the rare asset continues to grow with the latest foray thus meaning that the country now holds over 1,220 coins in its coffers. 

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Pundits Still Eyeing $53,000 – Whales Keep Stacking

The latest purchase does not however come without its share of criticism and skepticism from various market observers. Gold-fanatic Peter Schiff expressed his disapproval at Bukele’s Bitcoin purchases saying that it was unfortunate for the people of El Salvador. “I wonder how many more dips they will buy before they cut their losses and sell?” he asked.

From a technical point of view, other market analysts have reckoned that Bitcoin’s price could push lower, citing $53,000 as a psychological area along which they are willing to buy the asset. “Charts of interest to me I am interested in buying BTC around $53,000 and ETH around $4,030,” Renowned market analyst Peter Bradt says.

Even then, the latest dip has not only caught Bukele’s attention. In the last 24 hours, the third-largest Bitcoin wallet has added 991 more BTC with whales having increased their stashes by 7761 BTC in the last two weeks. This has also been the most aggressive accumulation since July sell-of.

Bitcoin Price Faces Strain But Offers a Better Discount 

For the last two weeks, Bitcoin has been the victim of various strains since tapping an all-time high of $68,508 in Mid-November.

Friday’s bloodshed which saw over $600 million liquidated as Bitcoin lost over $5000 in under 24 hours is seen as having been further fuelled by a new coronavirus variant named Omicron classed as “of concern” by WHO.

The shock was witnessed across major stocks with the S&P 500 index plunging hard as fresh fears of an economic beatdown hit the markets. At press time, Bitcoin price is exchanging hands in the $55,145 range, having shed over 9% in the last 24 hours and over 22% since tapping an ATH.