El Salvador President Buys 410 More Bitcoins in Treasury as Bitcoin Drops 10%
Bitcoin is down 10% on the day and El Salvador’s losses are piling up. But the president of this country, Nayib Bukele, was pretty calm and celebrated the opportunity to buy the rebate by investing $15 million in 410 bitcoins.
President of El Salvador buys 410 more bitcoins into treasury as bitcoin falls 10%
Friday January 21st, 2022 could be seen as a fateful day for some investors, who could become very nervous as they see their fortunes plummet after the Bitcoin price plummeted nearly 10%.
However, although Nayib Bukele has invested a large sum in Bitcoin, he does not belong to this group – perhaps because the money invested is not his personal fortune but that of his country.
Today, the President of the Central American country announced via Twitter that he has invested $15 million to buy 410 bitcoins. In the announcement, in English — a popular language among foreign bitcoiners interested in investing in El Salvador — Bukele assured that some are selling BTC at a very cheap price.
This latest purchase will cost an average of $36,585 per BTC in this latest round of trading. Now the country’s bitcoin reserves stand at 1,801. Assuming that Bukele paid an average of $47,411.99 per coin, the current average price of the total reserves bought by Bukele after this repurchase is now almost $44,918 and represents a loss. Approximately $8,311 for each bitcoin in the vault of El Salvador suffered a total loss of $14.96 million.
Research cryptocurrency loans in El Salvador…but not Bitcoin
A few hours before the announcement, it was also revealed that El Salvador is considering issuing crypto-backed loans to small and medium-sized businesses in the country.
According to Coindesk, Acumen, a lending platform running on the Solana blockchain, will financially support the National Commission for Small and Micro Enterprises (CONAMYPE) initiative, offering loans with annual interest rates ranging from 6% to 7% with a maximum of 7% provide 10%.
Acumen will use stablecoins like USDC or USDT to send resources to Conamype and then distribute them to entrepreneurs through Banco Hipotecario, a state-owned bank. The contractors, in turn, would pay the loan and interest in escrow dollars to the mortgage lender, who would then be responsible for repaying Acumen’s debt.
Alongside El Salvador’s President, New York City Mayor Eric Adams also bought Bitcoin (BTC) and Ethereum (ETH) to multiply the price drop.
Another massive bloodbath on Satoshi Street as Bitcoin and Ethereum each correct more than 8%. However, New York City Mayor Eric Adams was preparing to buy Bitcoin late yesterday.
As previously announced, Adams will convert his salary from US dollars to Bitcoin and Ethereum. The fund conversion is done through Coinbase, the largest cryptocurrency exchange in the country. In a press release from his office, the Mayor of New York City wrote:
“New York is the center of the world and we want it to be the center of crypto and other financial innovation. Being at the forefront of such innovation will help us create jobs, improve the economy and continue to be a magnet for talent from around the world.”
Eric Adams won the seat of mayor of New York City last November 2021. From the start, Adams has taken a pro-bitcoin and cryptocurrency stance. Shortly after winning the election, Adams made it a priority to announce that he would convert his first paycheck to cryptocurrency.
Coincidentally, the first paychecks come at a time when bitcoin and the broader crypto market have been adjusting heavily. Which means Adams will line his pockets. Earlier this month Adams said that $50,000 Bitcoin is a perfect buying opportunity. And Bitcoin is currently trading at a 20% discount from the $50,000 mark.
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