Bitcoin price plunged below 45,000 USD, the president of a country immediately took advantage of the bottom

On the evening of August 7 (Vietnam time), the value of Bitcoin suddenly plunged to $ 44,600, according to data from Coinmarketcap. Notably, this 17% drop comes just hours after the world’s largest cryptocurrency hit the $52,000 mark. The decline of Bitcoin also caused many other altcoins to decline in value.

Of course, Bitcoin’s deep crashes also create opportunities for many crypto investors to have the opportunity to ‘catch the bottom’, or ‘buy on sale. Accordingly, on his Twitter page, the head of this Central American country has just bought 150 Bitcoins, at a time when this cryptocurrency has plummeted in value.

“Fishing bottom. 150 new coins just bought,” President Nayib Bukele wrote on Twitter.

Accordingly, the latest purchase of Bitcoin by this president has brought the total amount of BTC that El Salvador is holding to 550. At the present time (10:30 on September 8), the Bitcoin price is currently trading at the threshold. $47,000. This means that the BTC El Salvador holds is worth $25,850 million. With 150 BTC alone being ‘bottomed’ at $ 44,600, the profit that El Savaldor has when BTC ‘turns back’ is $ 360,000.

A day earlier, President Nayib Bukele announced that El Salvador currently holds 400 Bitcoins. This statement was made just before the country officially passed a new law on September 7, recognizing Bitcoin as a legal payment currency like the US dollar. According to President Nayib Bukele, the law will save billions of dollars when El Salvadorans living abroad want to remit money back home.

This information immediately caused the Bitcoin price to suddenly increase by 1.49%, to reach more than 52,680 USD.

In June 2021, the government of El Salvador also announced that the country would give away 30 USD worth of Bitcoin (BTC) to all adult citizens of the country. With a total population of about 6.5 million, the El Salvador government will have to spend $195 million worth of Bitcoins to distribute to people across the country. It is known that each resident in this Central American country will have to download a blockchain e-wallet application developed by the government, to be eligible to receive the aforementioned Bitcoins.

President Nayib Bukele

Despite being the first country to officially legalize Bitcoin, this decision of El Savaldor did not receive much support from major financial institutions around the world.

The World Bank (WB) stated that it could not support El Salvador to implement Bitcoin as an official means of payment.

“We are committed to helping El Salvador in a number of ways, including currency transparency and some regulatory processes,” the World Bank said. “The government of El Salvador has offered us support for Bitcoin, but this is not an issue the WB can help with.”

The International Monetary Fund (IMF) has also issued a warning about the risks of using Bitcoin in day-to-day transactions after El Salvador, which is in the process of negotiating a loan from the organization, issued allows to use this coin as real money.