"Buy down" is a buzzword for bitcoin holders (quotation BTC) when the currency falls in price. El Salvador follows the order and, on Monday, bought more cryptocurrencies, which are now available to the state.
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Via Twitter, the president of the Central American country, Nayib Bukele, reported that El Salvador "just bought the drop", signaling the acquisition of 500 bitcoins, obtained at an average rate of $ 30.744. This equates to an investment of just over $ 15 million.
Now, El Salvador would have more than 2.301 bitcoins, knowing that in its latest purchase of 410 BTC, the Salvadoran state's total global holdings were 1.801 BTC.
Bukele took advantage of the recent drop in bitcoin, which dragged the rest of the market down and is still trading above $ 32.133 at the close of this article.
Thus, Bukele repeats his January economic move, when, taking advantage of a drop in the price of bitcoins, he took advantage of the situation to buy the aforementioned 500 BTC, inflating his government wallet.
It should be clarified that it is not possible to verify the exact number of bitcoins now available to the Salvadoran government, since Bukele is the one who reports the purchases and there is no information on the address where the coins rest on any official website.
El Salvador has been buying BTC for months
Bukele has already had experience buying bitcoins. In December 2021 he made the last move of that year and bought around 21 BTC. By that time, the country's holdings reached 1.391 BTC.
In November, Bukele bought another 100 BTC, and the total number of holdings was close to 1.230. And in September, just days after the Bitcoin law went into effect and the cryptocurrency became fiat currency, El Salvador bought 400 BTC, which it marked as the first of several purchases to be made by its government.
It is clear that the president takes advantage of every drop in BTC to buy more coins and include them in the public treasury. With them, Bukele invested in his country, which allowed him to defend his acquisitions.
However, the lack of transparency on the current position of these public funds means that the Salvadoran president has serious criticisms of the country's financial management, especially when his purchases are only reported through a social network.