El Salvador Buys Bitcoin Dip As Omicron Variant Ravages Market

Picture of a Bitcoin logo on a smartphone in front of a flag of El Salvador

El Salvador continues to keep its commitment to its Bitcoin strategy. The country which is currently the only sovereign nation to use a cryptocurrency as a legal tender has been making strides when it comes to its investment in Bitcoin.

Not too long ago, El Salvador had made another bitcoin purchase that brought its total to 1,120 BTC being held by the country. This was a continuation of the promise President Nayib Bukele had made on “Bitcoin Day” to increase the country’s holdings in the asset as time goes on. Staying on theme, the country has once again made another bitcoin purchase when the market is down and bought the dip.

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El Salvador Adds 100 BTC

President Nayib Bukele took to Twitter to announce the most recent Bitcoin purchase made by the government of El Salvador. In the tweet, the president said that the country had bought an additional 100 BTC at a “discount.” The discount being referred to is the downtrend that bitcoin has been in following its touch of a new all-time high at $69,000.

BTC recovers to $56K | Source: BTCUSDon TradingView.com

The discovery of a new COVID variant which had been reported by South African scientists had once again rocked financial markets globally. COVID had first laid waste to financial markets when countries had had to go into lockdowns to protect citizens from the virus. The markets had subsequently recovered but the impact at the time had been significant for the markets.

This time around, with the discovery of the Omicron COVID variant, Bitcoin had fallen about 20%. However, according to President Nayib Bukele, this presented the country an opportunity to purchase the digital asset at a 20% ‘discount’.

Bukele Strikes Back At Bank of England

Bank of England’s Chief Andrew Bailey had slammed El Salvador’s decision to accept Bitcoin as legal tender recently. Bailey had expressed concern over the dual currency system currently in operation in the country but mostly focused on the country’s adoption of bitcoin. The bank chief explained that the volatility of the digital asset could negatively affect the country.

President Nayib Bukele had taken to Twitter to address the concerns raised by the chief over the weekend. In the sarcastic response, the president mocked the chief, saying that “I guess Bank of England’s interest in the well-being of our people is genuine.”

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Additionally, Bukele had pointed out a concern of its own regarding the bank.

Despite criticisms following its adoption of bitcoin as legal tender in the country, El Salvador has not backed down on its mission. The latest development is plans to build a “Bitcoin City” that has no income or capital gains tax. Also, El Salvador has been successfully mining bitcoin using volcanic energy since October.

Featured image from The Guardian, chart from TradingView.com



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