After a long week of crypto turbulence, the markets are at a crucial point in need of some good news to minimize and possibly reverse the trend of crypto price meltdown.
Starting with El Salvador, the country sets out on another buying spree with a daily budget of 1 Bitcoin, starting November 18, 2022, as stated by the president, Nayib Bukele.
At Glance
● The cryptocurrency markets are yet to recover from the FTX meltdown and are in desperate need of good news.
● El Salvador to resume buying bitcoins with a new development force.
● President Nayib Bukele says the Nation will now buy a total of 1 Bitcoin daily starting November 18, 2022.
● The country's unrealized losses sit at about $60 million of about $375 million worth of bitcoin purchases - reports.
In entirety,
November 18, 2022, will mark a new development phase for El Salvador and its investment in Bitcoin, the largest cryptocurrency by market capitalization. Following a tweet from Nayib Bukele, president of El Salvador, the nation looks to acquire 1 Bitcoin unit each day as the new buying budget.
The central American country, El Salvador made Bitcoin legal tether about a year from today, more specifically September 7, 2021. This came slightly after the first-ever peer-to-peer protocol and secured digital money gained traction in the broader financial markets.
Reports indicate that the nation has however moved over stumbling blocks to push ahead with its bitcoin bet just as many other renowned industry players have.
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President Nayib Bukele has been the biggest proponent of Bitcoin and believes that the crypto would be good for the country’s financial health. Furthermore, he has gone against all odds for their Bitcoin bet despite repetitive warnings from the IMF and the World Bank to withdraw from their Bitcoin bet. -coingape
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That said, whilst in the midst of the FTX drama, El Salvador has devised a new plan which seems like an attempt to DCA buy up the bleeding cryptocurrency market. Based on the figures, this would mean a total of 365 BTC will be added to the country's balance provided the strategy is applied in the longer term.
At the time of writing, it is however unclear how long that would be. However, significant attention has been given to the nation's unrealized losses on their bitcoin bet which at the time is about $60 million, an estimate of 16% losses considering the reported total of $375 million spent.
Notwithstanding, this has been rather put into the perspective of "paper losses" given the nature of cryptocurrencies where losses are actually taken when sold.
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