Volatility has returned to the crypto market in a ‘buy the rumor, sell the fact’ scenario for the biggest cryptocurrency. El Salvador seems confident as President Nayib Bukele bought the dip.
BTC holders took their profits on September 7, 2021, as El Salvador moved to recognize the digital currency as a legal tender in a massive move that may have considerable implications for global adoption.
After reaching local highs of $52,800 yesterday, the Bitcoin price dropped violently to around $42,900 in early Tuesday trading hours in the New York session. From Peak to the trough that involved a loss of 19% happened within 24 hours.
President Nayib Bukele confirmed that his administration had managed to buy the dip by snatching around 150 BTC in the depths of the selloff. Based on previous reports, El Salvador purchased its first bitcoins on the eve of the Bitcoin law coming into effect. The initial acquisition of 200 BTC was valued at about $10.4 million.
Buying the dip 😉
150 new coins added.#BitcoinDay #BTC🇸🇻
— Nayib Bukele 🇸🇻 (@nayibbukele) September 7, 2021
Barely five minutes after the initial buy-the-dip tweet, Bukele stated that the “discount is ending” for Bitcoin. He also thanked the International Monetary Fund (IMF) for enabling his nation to “save a million in the printed paper” on his government’s BTC purchase.
For the record, the IMF has come out against El Salvador’s BTC foray. It is a warning about El Salvador’s initiative which might have contributed to the recent bout of the BTC market volatility.
Currently, El Salvador now owns 550 BTC worth nearly $28.8 million at the current prices.
It appears the discount is ending 🥲
Thanks for the dip @IMFNews. We saved a million in printed paper.
El Salvador now holds 550 bitcoin.#BitcoinDay #BTC 🇸🇻
— Nayib Bukele 🇸🇻 (@nayibbukele) September 7, 2021
Volatility in the crypto market is nothing new for the crypto market. The cumulative market cap of all the coins lost 50% between May and July as a combination of profit-taking, technical trading, and fear-inducing headlines dragged BTC from a high of around $65,000 to a low of $29,000.
The market has managed to stage a comeback over the past month with the flagship crypto reclaiming the $50,000 level and Ether hit $4,000 at some point. The total market capitalization climbed back above $2.4 trillion.
The BTC price appears to have bounced off the intraday low of $42,900. It was last seen trading just below $47,000.
