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El Salvador Buys 500 BTC as Bitcoin Crashed Below $31K

Last Updated on May 10, 2022 by Opeyemi Quadri

  • President Nayib Bukele expresses happiness over the crash in a series of tweets
  • …discloses that his country is undergoing a Bitcoin project
  • BTC crash caused a massive selloff among short-term crypto investors
  • More bad days ahead for Bitcoin says billionaire crypto investor

While some cryptocurrency of buyers around the world described the crash of Bitcoin below $31,000 Monday, May 9, 2022, as a disaster, it was good news for El Salvador and its president.

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The first country to adopt Bitcoin as one of its official currencies announced that it bought the dip by investing over $15 million to acquire 500 BTC.

El Salvador President Nayib Bukele informed his almost 4 million followers that, “500 coins at an average USD price of ~$30,744” and a few minutes after, “#Bitcoin City is coming along beautifully” he tweeted about another bitcoin project the country was undergoing which has a special design of the most valuable cryptocurrency in terms of market capitalisation

Crash Triggers Massive Sell-off

The May 9, 2022 BTC crash shows that the coin took at least 11% backward in market price as it fell to as low as $30,339.

It is the biggest fall since January 21. Bitcoin wasn’t the only crypto that was affected. The crash was obvious on other coins like Ethereum which dropped 9.75%; BNB dropped 13.89%; XRP dropped by 11.76%; while Terra (LUNA) dipped 39.38% at the time of publication.

The massive crash triggered a selloff by crypto holders who are afraid of losing the largest portion of their investment in the volatile market.

Data on Coin Glass shows that more than 200k traders worth $846.54 million were liquidated in the last 24 hours.

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Losing More Than 50% Since November 2021

In November 10, 2021, Bitcoin reached an all-time high of $68,789.63 after beginning the year under $30K, reaching $1,226,431,510,693 in market capitalisation.

In contrast, the recent crash shows that the largest coin dipped more than 50% between November 2021 to May 2022, while standing at $586,706,949,157 MarketCap at the time of publication, according to CoinMarketCap’s BTC historical data.

A billionaire cryptocurrency investor Michael Novogratz who looked unperturbed by the fall stated that the bitcoin price could get worse before they get better.

He was quoted by Al Jazeera as saying, “Crypto probably trades correlated to the Nasdaq until we hit a new equilibrium”, saying more damages are expected in the days ahead.

El Salvador’s Confidence In Bitcoin

While there are growing uncertainties around cryptocurrencies, El Salvador continues to store and use BTC as one of its currencies alongside the US Dollar.

The North American country adopted BTC on September 7, 2021. The International Monetary Fund (IMF) warned that such action could cause monetary and economic disaster.

But IMF’s warnings have made no change on millions of people around the world who are addicted to the profit side of the volatile crypto asset.

For instance, the Central African Republic, one of the poorest countries in the World, on April 22, 2022, followed the footsteps of El Salvador by officially adopting Bitcoin as its second official currency without considering the havoc BTC could cause for the economy of Central African Republic

Meanwhile, the May 9, 2022 bitcoin crash was one of the trending discussions on Twitter at the time of publication.

Featured Image:

  • By @nayibbukele
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