El Salvador president Nayib Bukele keeps “buying the Bitcoin dip,” but so far it hasn’t paid off.
Bukele began acquiring Bitcoin earlier this month — just before El Salvador ratified the cryptocurrency as legal tender on September 7.
Bitcoin tanked a pearl-clutching 15% that day, despite the crypto community’s pledge to spend $30 on BTC in solidarity with El Salvadorans (who could unlock that amount by signing up to Bukele’s Chivo app).
Protos calculates Bukele spent around $28.5 million on his first three buys, which amounted to 550 BTC.
Bukele disclosed those purchases in quick succession from the evening of September 6 through to the following afternoon.
The self-styled “coolest dictator in the world” was then likely to have spent a touch under $6.6 million on another 150 BTC on Monday.
Altogether, we estimate Bukele bought El Salvador’s 700 BTC for around $35.1 million.
That works out to be an average price of $50,150 per Bitcoin.
But Bitcoin, under pressure from wider market jitters attributed to collapsing Chinese property developer Evergrande, currently trades at $43,000.
Bukele hasn’t disclosed the exact prices at which he bought. Still, it’s likely El Salvador is currently underwater by 15% on their Bitcoin (now worth $30 million).
So, Bukele is down $5 million in his first two weeks of Bitcoin investing at press time.
Of course, as always with crypto, anything could happen at any time.
But if Bitcoin continues to fall and enters bear market territory — Bukele’s penchant for “buying the dip” could become a very public tutorial in Dollar-Cost Averaging.
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