On Wednesday, October 27, Bitcoin (BTC) and the overall cryptocurrency market entered a strong correction with the BTC price slipping under $60,000 levels. Citing some opportunity here, the Latin American nation El Salvador bought the Bitcoin dip adding 420 Bitcoins worth $25 million to the Treasury.
“It was a long wait, but worth it. We just bought the dip! 420 new bitcoin,” wrote El Salvador President Nayib Bukele in his Twitter post.
It was a long wait, but worth it.
We just bought the dip!
420 new #Bitcoin🇸🇻
— Nayib Bukele 🇸🇻 (@nayibbukele) October 27, 2021
The President further noted that they have already been making a profit from the Bitcoins they have purchased. Explaining further he said:
How do we make a profit if 1 BTC = 1 BTC ? We have a trust fund accounted in USD, but the trust is funded by both USD and BTC. When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total.
This is the first big purchase of El Salvador in more than one month after its last purchase on September 20, last month. El Salvador is the first country to accept Bitcoin as a legal tender along with the USD.
As per the official data from Reuters, the El Salvador treasury holds a total of 1,120 BTC worth nearly $66 million. The country’s economy heavily depends on the $6 billion in remittances received from abroad. Getting Bitcoin as the official currency will help to cut down on remittance costs.
Bitcoin Sees Massive Liquidations AMid Price Crash
The Bitcoin (BTC) price has crashed more than 10% on Tuesday and is currently trading at $58,870 with a market cap of $1.112 trillion. This resulted in massive long liquidations worth over $500 million.
$514.72 million liquidated over the past hour pic.twitter.com/CqHitjBDve
— Bloqport Insights (@Bloqbot) October 27, 2021
However, on-chain metrics for Bitcoin continue to show encouraging signs. As on-chain data provider Santiment reports, the Bitcoin supply at the exchanges has touched a 29-month low and the lowest since May 2019.
📉 The supply of #Bitcoin sitting on exchanges has fallen to its lowest ratio since May, 2019. This supply reduction is generally a promising sign for bulls, as less tokens available on exchanges correlates with less possibility of a major sell-off. 😌https://t.co/Lh0mj9N1tq pic.twitter.com/N3WdRkp75n
— Santiment (@santimentfeed) October 27, 2021
This declining BTC supply shows that investors have been gobbling up more assets to their platform.