El Salvador, a Central American government, has added 410 Bitcoin (BTC) to its central reserve as BTC prices fall below $37,000, the lowest point since July 26th, 2021.
In fact, President Nayib Bukele announced the new contribution to El Salvador’s BTC reserve, confirming that 410 BTC were purchased for $15 million, putting the price per BTC at around $36,585.
El Salvador approved BTC as legal cash on Sept. 7, 2021, as a way to combat catastrophic inflation and the country’s dwindling purchasing power. Fast forward to now, and the country has deliberately accumulated 1,801 BTC over the past four months. Particularly when the market experiences a brief price drop.
El Salvador’s most recent purchase is the cheapest it has ever been since the country embraced Bitcoin as a legal tender.
With Bitcoin trading just above $36,000 and the ensuing sell-off, Bukele feels that “some folks are selling relatively cheap”. Bolstering his long-term goal of widespread Bitcoin acceptance.
Investors transferred BTC earnings into buying other tokens
BTC prices rose steadily from mid-July to an all-time high of about $69k in the first week of November, as shown above. Investors transferred BTC earnings into buying other tokens during the next three months. Resulting in a sharp drop in market values.
Additionally, according to a new forecast from Crypto.com, the global crypto industry will have one billion users by the end of 2022. As more developing countries follow El Salvador’s lead and accept BTC.
On the other hand, according to Crypto.com, “We are on target to reach 1 billion crypto users by the end of 2022. If we project a similar rate of increase in 2022”. The research concludes that “nations can no longer afford to ignore the growing push towards crypto by the public”. Citing a combination of poorer countries following El Salvador’s lead and a “friendlier approach” toward the crypto business.