buying the dip

El Salvador Buys 410 Bitcoins as BTC Plunges to Lowest Level in Months

23/01/2022 by Idelto Editor

El Salvador bought the dip as the price of bitcoin plunged to a record low. President Nayib Bukele said Friday that his country has purchased 410 more bitcoins. The Salvadoran government has bought a total of 1,801 bitcoins since the cryptocurrency was made legal tender in the country.

El Salvador Buys the Dip

The president of El Salvador, Nayib Bukele, tweeted Friday that his country just bought 410 BTC for $15 million. Having paid about $36,585 per coin, Bukele wrote, “Some guys are selling really cheap.”

In the same tweet, Bukele also stated that he did not miss the dip after all. “Nope, I was wrong, didn’t miss it,” the Salvadoran president wrote in response to his own tweet on Jan. 14 that says, “I think I might have missed the dip this time.”

The price of bitcoin began a steep decline in early November last year from above $67K, based on data from Bitcoin.com Markets. BTC started the year around $47K but fell below $41K on Jan. 8. The crypto then slowly crept back up and moved sideways until Jan. 20 when it suffered a sharp decline. At the time of writing, the price of BTC is $35,713.02.

While bitcoin was moving sideways, Bukele thought he missed the dip. On Jan. 14, BTC was hovering around $43K.

At the time of writing, the price of bitcoin has dropped almost 8% in the last 24 hours, more than 17% in the past seven days, and almost 29% in the past 30 days. However, it is still up 15.4% for the year.

El Salvador passed a bitcoin law making BTC legal tender alongside the U.S. dollar in September last year. Since then, it has been a regular purchaser of bitcoin.

In September last year, El Salvador bought 700 bitcoins. The country additionally bought 420 BTC in October, 100 BTC in November, and 171 BTC in December. With the latest purchase, El Salvador has bought 1,801 BTC altogether.

Earlier this month, Bukele made some bullish predictions for 2022 about bitcoin. Besides expecting the price of bitcoin to reach $100,000 this year, the Salvadoran president foresees two more countries adopting BTC as legal tender. He also said that El Salvador’s Bitcoin City will commence construction during the year and the country’s volcano bonds will be oversubscribed.

What do you think about El Salvador buying the dip again? Let us know in the comments section below.

Veteran Trader Peter Brandt Shares ‘Sacred Trading Rule’ as Bitcoin Falls, Warns Against Buying the Dip

09/01/2022 by Idelto Editor

Veteran trader Peter Brandt has shared “a sacred trading rule” he uses in response to a comment about buying bitcoin as the price of the cryptocurrency continues to fall. “Never add to a losing trade,” he affirmed.

Peter Brandt Offers Trading Advice

Veteran trader Peter Brandt has a trading suggestion for anyone considering buying the dip. Brandt has been a futures and FX career trader since 1975. He is a chartist and the author of the Factor Report. He trades a variety of markets, including Dow futures, bonds, corn, crude oil, European wheat, Osaka Dow, U.S. dollar, and sugar.

Replying to a comment on Twitter stating that there may be additional opportunities for long-term hodlers to buy even cheaper bitcoin in the coming months, Brandt wrote:

A sacred trading rule I have used is never add to a losing trade.

He explained in a tweet that people were saying the same thing about silver futures in 1980 after it topped $50. “lt then sank to a low of $3.65 and did not start back up for 24 years,” he stressed. The trader clarified, however, that he is not predicting that bitcoin will follow the same path.

The price of bitcoin has fallen significantly this week, losing over 10% in the past seven days. At the time of writing, the price is $41,657.45 based on data from Bitcoin.com Markets.

Brandt commented on bitcoin’s violation of the parabolic advance on the Bitcoin Live discussion Thursday.

However, he tweeted Friday: “I saw the violation of the parabolic advance and commented on it in real time to members of Bitcoin Live in real time, but in hindsight, I might not have taken the event seriously enough. We’ll see.”

He followed up with another tweet. Noting that “Some view predictions as a ‘one-and-done’ event. I am [a] student of Bayesian probability. Predictions and analysis must always morph relative to the events of the time,” he concluded:

When circumstances change, predictions must change. The parabola might not be the driving force in BTC.

What do you think of Peter Brandt’s advice? Let us know in the comments section below.

El Salvador Buys 100 More Bitcoins Amid Crypto Sell-Offs and New Covid-19 Variant Scare

27/11/2021 by Idelto Editor

As reports of a new Covid-19 strain spread, tanking the price of many cryptocurrencies, El Salvador bought the dip. The country has added 100 more bitcoins to its treasury despite a recent warning by the International Monetary Fund (IMF), bringing the total number of bitcoins purchased to 1,220.

El Salvador Buys the Dip: 1,220 Bitcoins Purchased to Date

El Salvador has taken advantage of the Friday sell-off and purchased 100 more bitcoins as reports of a new coronavirus variant spread. The Salvadoran president, Nayib Bukele, tweeted on Black Friday that his country has bought the dip. “100 extra coins acquired with a discount,” he wrote.

An advisory panel of the World Health Organization (WHO) on Friday classified the new Covid-19 variant, first detected in South Africa, as a highly transmissible virus, naming it “Omicron.”

The crypto market shed billions of dollars on Friday amid reports of the new coronavirus strain. The price of bitcoin fell from $59,165 Thursday afternoon to $53,798 Friday afternoon. BTC is trading at $54,830.98 per coin at the time of writing based on data from Bitcoin.com Markets.

El Salvador made bitcoin legal tender alongside the U.S. dollar on Sept. 7. At the time, the price of BTC was approximately $46,000.

Since bitcoin became legal tender, El Salvador has purchased 1,220 BTC altogether, according to announcements by Bukele.

The day before the country’s bitcoin law went into effect, El Salvador purchased two sets of 200 bitcoins. It bought 150 BTC more on Sept. 7 and 150 more coins on Sept. 20. Bukele said at the time, “El Salvador now holds 700 coins.”

Since then, El Salvador bought 420 more coins on Oct. 27, bringing the total purchase to 1,120 coins. Friday’s purchase pushes the country’s bitcoin stash to 1,220 coins. At the current price, 1,220 bitcoins are worth approximately $66.9 million.

President Bukele announced last week a plan to build the world’s first “bitcoin city” powered by a volcano and financed by bitcoin bonds. He noted there would not be any taxes in the bitcoin city except for value-added tax (VAT).

However, a day after the announcement, the International Monetary Fund (IMF) warned the country against using BTC as legal tender. The IMF cited “significant risks to consumer protection, financial integrity, and financial stability” as the reasons, adding that it “also gives rise to fiscal contingent liabilities.”

What do you think about El Salvador buying the dip amid crypto market sell-offs as a new Covid-19 strain emerged? Let us know in the comments section below.

First Day of Bitcoin as Legal Tender: El Salvador Buys the Dip, Country’s BTC Stash Grows

08/09/2021 by Idelto Editor

Bitcoin is now legal tender in El Salvador, and the country’s bitcoin stash has grown to 550 coins. The Salvadoran government started buying the cryptocurrency Monday ahead of the Bitcoin Law taking effect. On Tuesday, President Nayib Bukele said El Salvador bought the dip.

El Salvador Buys More Bitcoin

El Salvador’s Bitcoin Law came into effect Tuesday, Sept. 7, making BTC a national currency alongside the U.S. dollar.

El Salvador has been buying bitcoin ahead of the Bitcoin Law taking effect. President Nayib Bukele announced Monday that his government had started buying bitcoin. “El Salvador has just bought its first 200 coins. Our brokers will be buying a lot more as the deadline approaches,” he wrote. A few hours later, he tweeted: “El Salvador just bought 200 new coins. We now hold 400 bitcoin.”

The price of bitcoin was rising leading up to the Bitcoin Law entering into force. However, it dipped around 11:00 a.m. EST on Sept. 7, falling from above $51K to below $43K. At the time of writing, the price stands at about $46,883.

After the price dipped, President Bukele tweeted: “Buying the dip. 150 new coins added.”

The Salvadoran president followed up with another tweet at 11:25 a.m. EST as the price of bitcoin stabilized at the $46K level. He wrote, “It appears the discount is ending. Thanks for the dip @IMFNews. We saved a million in printed paper,” adding:

El Salvador now holds 550 bitcoin.

The International Monetary Fund (IMF) has spoken against countries adopting bitcoin as legal tender on several occasions. In late August, IMF’s legal counsels said that cryptocurrencies, like bitcoin, came with “substantial risks” and are inadvisable as legal tender.

Sept. 7 got off to a bumpy start for El Salvador when users complained that the government’s bitcoin wallet app, Chivo, was unavailable on various platforms, including Apple and Huawei. When the app became available on Huawei, it was unable to cope with user registration, Bukele explained, adding that the government decided to unplug it in order to connect to more servers and increase capacity. The issue appeared to have been resolved at the time of writing.

What do you think about El Salvador buying the dip and growing its bitcoin stash? Let us know in the comments section below.