Investors fear sell-off, El Salvador aggressively buys bitcoin bottom

(Dan Tri) - While the cryptocurrency market is plummeting and investors are selling off massively, El Salvador is still taking the opportunity to buy large amounts of bitcoin.

El Salvador has just completed one of its largest bitcoin purchases, adding 1,098 bitcoins in just seven days. President Nayib Bukele later posted a screenshot on the X platform, showing that the total amount of bitcoin held by the government reached more than 7,474 bitcoins, equivalent to about $688 million.

President Nayib Bukele has publicly announced a “buy the dip” strategy to optimize capital costs, expressing long-term confidence in bitcoin despite the strong fluctuations in the price of the digital currency, which at times even broke the $90,000 mark.

The government sees bitcoin as both an investment asset and a symbol of national sovereignty . However, observers warn of high risks if prices fall sharply, while the economy remains heavily dependent on remittances and foreign loans.

According to analysts, the continued buying despite the market plunge reflects the long-term strategy that El Salvador is pursuing for crypto assets.

Andre Dragosch, a research expert at financial company Bitwise, said that sovereign countries are increasing their purchases of bitcoin as prices adjust, showing a certain change in the approach to global finance.

Stacy Herbert, director of El Salvador's Bitcoin Office, called the world's largest digital currency "free, transparent and empowering for the individual." She said President Bukele sees bitcoin as a distribution tool rather than a reinforcement of state power.

El Salvador is the first country in the world to recognize bitcoin as legal currency (Photo: Business Metrics).

It’s not just El Salvador that’s getting involved with crypto assets. The Czech National Bank (CNB) has also bought bitcoin and other cryptocurrencies worth around $1 million, marking the first time the institution has directly held crypto assets.

Meanwhile, bitcoin continued to fall sharply. On November 18, the price of bitcoin briefly fell below $90,000. Although El Salvador’s nearly $100 million purchase provided a temporary respite for the market, the sharp decline still caused widespread defensive sentiment.

Analysts say the market is waiting to see whether long-term investors can "absorb" the supply at low prices.

Source: https://dantri.com.vn/kinh-doanh/nha-dau-tu-so-hai-ban-thao-el-salvador-manh-tay-bat-day-bitcoin-20251119192919524.htm