Nayib Bukele, the President of El Salvador, announced yesterday that the country has added 21 Bitcoin to its crypto portfolio. After recognizing Bitcoin as legal tender in the country, El Salvador has expanded its BTC portfolio significantly.
The latest move from El Salvador came after the crypto asset dropped nearly 30% from its all-time high of $69,000. Even in the past, the Central American country consistently purchased the BTC dip. Bukele expressed immense support for Bitcoin and other innovative digital technologies in the last few months.
"And, we are buying 21 Bitcoin for the occasion," Bukele mentioned in a Tweet on Tuesday. Last month, the President of the Central American country announced that El Salvador is planning to build the world’s first Bitcoin City backed by the BTC bonds.
El Salvador’s BTC journey witnessed strong resistance and criticism from leading financial organizations around the world. The IMF and the World Bank criticized the country’s decision to accept BTC as legal tender in the region. During a recent event, Andrew Bailey, the Governor of the Bank of England, expressed his concerns about El Salvador’s Bitcoin strategy.
Bitcoin Network
BTC network has shown a mixed picture in the last 4 weeks. While the mining sector has seen a decent jump in profits, the overall address activity decreased. Despite BTC’s underwhelming performance in December, long-term holders increased the accumulation of the most valuable digital asset.
“Bitcoin supply is moving from a Liquid to an Illiquid state at a rate of 100k BTC per month. Illiquid coins are those sent to an address with little history of spending, generally associated with investor accumulation and bull market buyers,” Glassnode noted.
“New investors are the first group tested by price weakness. In the days following the November all-time high and beyond the liquidation flush of December 4, loss realization on-chain of $50-$100M per day was common. For loss realization to occur after an all-time high, those spenders must be top buyers,” the company added in its report.
