El Salvador buys 150 BTC as crypto currencies prices plunge

By Raffaele Redi

The announcement came after a troubled weekend of protests in El Salvador

A Chivo Wallet ATM in El Salvador                                 
A Chivo Wallet ATM in El Salvador Photo: presidencia.gob.sv
                                

El Salvador government bought a further 150 bitcoins (less than $6.75m), President Nayib Bukele announced on 20 September as the price of bitcoin (BTC), the lead crypto, dropped below $45,000 during the night, bringing the total amount of BTC held by El Salvador to 700 (less than $31.5m).

“We just bought the dip. 150 new coins! El Salvador now holds 700 coins,” announced Bukele on Twitter.

The announcement followed a troubled weekend for El Salvador president as the local media grilled him on protests against bitcoin’s adoption after a member of the local press was accused of setting an ATM on fire.

The protest started on 15 September as the country celebrated its independence day from Spain, thousands of residents gathered in San Salvador, the capital, demonstrating against BTC as a legal tender.

Brian Armstrong approval

Coinbase CEO, Brian Armstrong, recently applauded the El Salvador experiment, wondering which country would follow in the future.

“Crypto does not account for the majority of transactions in El Salvador yet, but the decade is young. Steps in the right direction...” he wrote on Twitter.

Nevertheless, S&P analysts recently warned El Salvador against credit risks, as the adoption could come at high costs with bitcoin's extreme volatility possibly driving large swings in prices.

El Salvador figures

According to the local government, following the adoption of BTC in the country, more than 1.1 million users have installed the application known as Chivo-wallet to manage the balance of bitcoin and dollars using a mobile phone, while it is estimated that every day up to 300,000 new users are installing the official wallet.

With 205 bitcoin ATMs installed across the country, El Salvador has recently become third in the world for the number of cash machines in its territory according to Coinatmradar data.

BTC/USD price history

Date Close Change Change(%) Open High Low
Oct 27, 2021 61302.30 974.90 1.62% 60327.40 61372.55 60148.55
Oct 26, 2021 60321.45 -2772.70 -4.39% 63094.15 63293.00 59820.55
Oct 25, 2021 63095.50 2248.55 3.70% 60846.95 63742.25 60644.85
Oct 24, 2021 60853.35 -444.10 -0.72% 61297.45 61496.80 59489.75
Oct 23, 2021 61297.05 613.20 1.01% 60683.85 61753.75 59638.50
Oct 22, 2021 60683.20 -1495.65 -2.41% 62178.85 63762.50 59956.45
Oct 21, 2021 62200.00 -3804.90 -5.76% 66004.90 66668.75 61959.90
Oct 20, 2021 66004.65 1717.60 2.67% 64287.05 67020.00 63519.90
Oct 19, 2021 64286.75 2255.05 3.64% 62031.70 64524.25 61351.95
Oct 18, 2021 62033.45 505.75 0.82% 61527.70 62707.40 59878.75
Oct 17, 2021 61512.70 631.35 1.04% 60881.35 61717.20 59619.45
Oct 16, 2021 60876.75 -813.70 -1.32% 61690.45 62390.70 60150.70
Oct 15, 2021 61695.45 4340.85 7.57% 57354.60 62908.70 56857.75
Oct 14, 2021 57353.25 -19.75 -0.03% 57373.00 58553.95 56799.50
Oct 13, 2021 57372.50 1378.95 2.46% 55993.55 57811.50 54220.00
Oct 12, 2021 55997.35 -1498.75 -2.61% 57496.10 57711.40 53648.30
Oct 11, 2021 57494.40 2813.25 5.14% 54681.15 57841.15 54437.25
Oct 10, 2021 54678.25 -278.95 -0.51% 54957.20 56075.95 54104.95
Oct 9, 2021 54960.35 991.15 1.84% 53969.20 55495.70 53679.20
Oct 8, 2021 53968.10 161.75 0.30% 53806.35 56172.25 53621.00

Further reading: El Salvador’s bitcoin adoption ‘may come at a high cost’

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