Money and Markets

El Salvador bought R230 million worth of 'really cheap' bitcoin as the price plummeted

Business Insider US
El Salvador President Nayib Bukele during the Latin Bitcoin conference on November 20, 2021.
Marvin Recinos/AFP via Getty Images
  • El Salvador has bought 410 bitcoin for the equivalent of R230 million the country's President Nayib Bukele tweeted.
  • "Some guys are selling really cheap," he wrote, as crypto continued to sell off.
  • Bitcoin has plummeted over the last week and is down almost 50% from its November record high.
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El Salvador purchased 410 bitcoin worth the equivalent R230 million as the cryptocurrency's price plunged, according to the country's president Nayib Bukele.

"El Salvador just bought 410 #bitcoin for only 15 million dollars," the president tweeted. 

He referenced the crypto selloff, saying, "Some guys are selling really cheap." 

Bukele, whose country was the first to make bitcoin legal tender in September, mentioned the broad selloff that has hit the cryptocurrency market hard in January, saying he "didn't miss it."

Bitcoin has plunged recently, in line with a sharp retreat in investor risk appetite that has hit the more valuable parts of the stock market, such as technology shares. Bitcoin has fallen by 20% over the last week and lost nearly 28% this month. It has fallen nearly 50% from its all-time high of around $69,000 in November, putting it firmly in bear-market territory.

The Federal Reserve has signaled it intends to wind down the support it put in place for the economy during the pandemic and will raise interest rates this year, as it fights off a rapid rise in consumer inflation and wages.

Bitcoin continued to fall after Bukele's announcement. By Monday, it was trading around $33,600, around its lowest for six months. 

After its purchase on Friday, El Salvador held more than 1,500 bitcoins, according to CoinDesk. The country plans to issue a $1 billion, 10-year bitcoin bond this year.

The president is a well-known crypto enthusiast and is known for "buying the dip", having also done so after bitcoin dropped 7.7% on 26 November 2021. El Salvador bought 100 bitcoins at this point.

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