Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The Crypto Market ends the week at a total market capitalization of $1,286 trillion. Bitcoin manages to withhold the $30k level after a disappointing week. Ethereum lost almost 3% of its value over the past seven days. XRP decreased by nearly 3% this past week. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector lost over $0.3 billion from the…
While some market participants are panicking amid the recent crash, the most fervent HODLers buy the dip. For example, El Salvador’s president Nayib Bukele just announced a purchase of another 410 Bitcoin for $15 million.
A Nation-State Buys The Dip
Bukele announced his recent purchase in a tweet moments ago, faking out some of his followers. The president – known for trading the nation’s Bitcoin from his phone – last purchased Bitcoin in December. After bagging 21 Bitcoin for $1 million, the price fell from the upper forty thousand dollar range.
Last week, Bukele responded to the price moves with seeming regret, fearing that he’d “missed the dip”. However, his most recent announcement confirmed that he had a buy planned from the start.
“Nope, I was wrong, didn’t miss it,” he said. “El Salvador just bought 410 #bitcoin for only 15 million dollars some guys are selling really cheap.”
Last week, Mike Novogratz – CEO of Galaxy Investments –predicted that Bitcoin would bottom out within the $40 000 to $38 000 dollar range. He said that he knew many institutions eyeing that price level as prime time to buy.
Indeed, El Salvador isn’t the only whale to have taken the opportunity. Whale Alert – an on-chain crypto purchase tracker – has revealed multiple 1000+ Bitcoin purchases over the past 12 hours. This afternoon, an unknown address withdrew 3000 Bitcoin worth over $100 million from Bitfinex.
However, the price has sunk further than Novogratz predicted. Bitcoin briefly fell under $36k today, and its market cap is below $700 billion at writing. Furthermore, on-chain analyst Will Clemente noted that open interest is yet to flush from the market, possibly signalling deeper lows.
Bukele’s Bullish Devotion
Despite a long list of naysayers and a bearish crypto market, Bukele has dismissed all critics discounting his Bitcoin strategy. However, after Moody’s his country’s sovereign debt was downgraded this month, he told them that he “DGAF”.
Furthermore, when notorious Bitcoin bear Steve Hanke criticised El Salvador’s Bitcoin volcano bonds, Bukele lashed back, calling him an “idiot”, followed by a long thread debunking the Economist’s arguments.
MicroStrategy CEO Michael Saylor – another HODLer – also remains stoic in the face of the crash. He recently told Bloomberg that his company would never sell its Bitcoin. His company’s last purchase was in late December, with no indication of buying today’s dip.
After today, El Salvador is estimated to own over 1800 Bitcoin.