The collapse of multiple projects and the market crash left investors doubting whether to put their money into crypto. While speculation that Bitcoin might be dead started to surface, a major Bitcoin bull didn’t lose hope. The savior shocked the whole world by accepting BTC as legal tender. Despite the asset’s fall below $16,000, El Salvador was looking to expand its holdings.
In a recent tweet, El Salvador President Nayib Bukele announced that the government would start buying one BTC every day.
Bitcoin survived both Covid-19 and the infamous de-pegging of TerraUSD. however, the FTX collapse wreaked havoc in the market and pushed the king coin to a two-year low. 6.5 million Salvadorans, who trusted their president with depositing government finances in Bitcoin, became wary.
According to Ricardo Castaneda, an economist at the Central American Institute of Fiscal Studies [ICEFI]the estimated El Salvador’s losses were about $70 million.
Despite this, Bukele remained untethered as he continued “buy the dip.” Time and time again, the Salvadoran president was seen buying the Bitcoin dip. The demise of the FTX empire did not make Bukele any less optimistic about the king coin. Earlier this week, he even tweeted that FTX was nothing like Bitcoin.
Bitcoin due to the collapse of FTX
At the time of writing, Bitcoin was trading at $16,573.57 with a drop of 2.06 percent in the past 24 hours. While it managed to rise to a high of $17,650, it also plummeted to a low of $15,872.94 earlier this week.
The chart above shows how Bitcoin plummeted over the past two weeks. After the whole FTX debacle, BTC traded 75.93 percent below the all-time high of $68,789 it hit a year ago.
With a purchase of one Bitcoin per day, El Salvador is likely to increase both its holdings and the price of BTC.