As Bitcoin prices drop to their lowest levels since July 2021, many cryptocurrency investors would have reason to be worried.
But some Bitcoin bulls are doubling down. Among them is Nayib Bukele—not the head of a crypto hedge fund, but the president of El Salvador.
The Central American country made Bitcoin legal tender in September 2021, allowing consumers to use it as payment for goods and services. El Salvador held 400 Bitcoin—around $13 million at current prices—when it adopted the token as an official currency, and has continued to build up its holdings.
Bukele has doubled down on his Bitcoin bet as its price lost 25% in recent days, trading close to $30,000 on Tuesday after changing hands around $40,000 last week. “El Salvador just bought the dip!” he said on Twitter late Monday, revealing a purchase of 500 Bitcoin at an average price of $30,744.
That brings the country’s total reserve up to 2,301 Bitcoin, or $72 million, according to data from Bloomberg.
Bitcoin has been on a wild ride since El Salvador designated crypto as legal tender last year. It climbed from around $45,000 in September 2021 to as high as $68,990 two months later, before recently retreating to less than half of its peak.
El Salvador’s embrace of Bitcoin was heralded by proponents of digital assets as evidence of wider cryptocurrency adoption, but has since been met with criticism from international authorities and a mixed reception among citizens.
Officials at the International Monetary Fund urged El Salvador to remove Bitcoin as legal tender in January. The IMF warned last month that the more widespread use of cryptocurrencies in emerging markets “could undermine domestic policy objectives” in its annual financial stability report.