El Salvador Buys the Bitcoin Dip As the BTC Price Struggles Under $20,000

Late Thursday, June 30, El Salvador President Nayib Bukele announced buying the Bitcoin dip at a price of around $19,000. The announcement read: El Salvador bought today 80 #BTC at $19,000 each! #Bitcoin is the future! Thank you for selling cheap”

 

The previous purchase by El Salvador was on May 5, 2020, when BTC was trading around $30,000. Back then El Salvador purchased 500 Bitcoins adding them to its reserves.

 

With its recent purchase, El Salvador sits on a Bitcoin stockpile of 2,381 BTC at an average price of $43,000. Well, this shows that the country has been still sitting in more than 50% loss on its total investments.

 

El Salvador has been adding Bitcoin to its treasury ever since it declared Bitcoin a legal tender last year in September 2021. Since then, the Latin American has been buying BTC at different intervals.

 

Apart from El Salvador, other players are also capitalising on buying the Bitcoin dips. Two days ago on June 29, business intelligence firm Microstrategy announced its fresh purchase of an additional 480 Bitcoin.

 

The announcement from MicroStrategy CEO Michael Taylor reads: “MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin”.

 

Some of the top market analysts have also been giving higher Bitcoin price targets ahead this year. Earlier today, Deutsche Bank analysts said that Bitcoin holds the potential to touch $28,000 by the year-end.

 

It means the BTC price could surge 40% from the currently levels. Deutsche Bank analysts Marion Laboure and Galina Pozdnyakova said that Bitcoin and the crypto market has been increasingly correlated to Nasdaq 100 and the S&P 500.

 

The bank analysts are expecting the S&P 500 to recover to its January levels. Thus, they believe that it could also lead to a similar surge in the BTC price. But note that the global macro conditions look fragile as of now. Thus, if the condition of the U.S. economy worsens, the S&P 500 and the BTC price correct further from here.

 

On the other hand, Wall Street banking giant JPMorgan also believes that the current phase of deleveraging in the crypto space may not last longer. The JPMorgan strategists led by Nikolaos Panigirtzoglou wrote: The current deleveraging cycle may not be very protracted,” given the fact that crypto entities with the stronger balance sheets are currently stepping in to help contain contagion” and that venture-capital funding, an important source of capital for the crypto ecosystem, continued at a healthy pace in May and June.”