In Brief
- Bitcoin price dropped to $43,000 and triggered $3 billion of position liquidation
- El Salvador ‘bought the dip’ and added 150 BTC
- El Salvador now holds 550 BTC after considering it as a legal tender
On the first day after El Salvador announced Bitcoin as a legal currency alongside the US dollar, Bitcoin price crashes by almost $10,000. El Salvador took advantage of the price-fall and purchased an additional 150 BTC. Now the country holds 550 bitcoin.
President Nayib Bukele announced the purchase of Bitcoin via twitter saying “Buying the Dip”.
El Salvador’s Bitcoin law came into effect on Tuesday, September 7. El Salvador had already bought two slots of 200 Bitcoins yesterday. The country’s Bitcoin stash has grown after adding 150 bitcoins amid the Bitcoin market fall.
The price of bitcoin was gradually rising in the last few days. However, it dipped falling from approx $51K to down $42,800K, which Means it fell almost 10,000$. The Sharp decline in price triggered about $3 billion of trading position liquidations.
However, this dip was a proven aid to buy 150 Bitcoin for El Salvador. While writing this news, the price became almost stable and revolving around $46,500.
Amid the adoption of Bitcoin as a legal tender of El Salvador, The International Monetary Fund (IMF) warned the country, counting it as a ‘substantial risk’. They said that Bitcoin comes with lots of risks and costs involved.
Tobias Adrian, the financial counselor, and director of the IMF’s Monetary write in his blog without naming any country “As a national currency, crypto assets — including bitcoin — come with substantial risks to macro-financial stability, financial integrity, consumer protection, and the environment.”
