Bitcoin Forum

Apparently Bukele bought another "Dip" according to his last tweet, but there's something that I don't get in this move, let me explain.


How could someone consider a 44k resistance a dip?....right now we are in a period of retracement after a big upward move started in July; I wouldn't have been as comfortable as him investing so much money (remember that we are talking about one of the poorest countries in the world) with the probability of a massive bearish crackdown that could take us back to the 29k level.


I know that could be a "long time holder" move, but he has a reputation to defend, with a skeptical and poor population living in awful conditions, so, in my opinion, we have two possible cases:

1) He is a fool and apparently is comfortable with making such a risky move (a long bearish period can still be a possibility).

2) He probably knows (please don't take me as a conspiracy theorist, I'm just trying to imagine) that someone is gonna start another bull run soon, 'cause El Salvador attracted the attention of many big crypto investors, so a confrontation between Bukele and them about this topic is not so unlikely.


Let me know your opinion about this.

A long bearish period could actually appear, in my opinion, what he did is such a bad move considering El Salvador's current state and how neutral their citizens are about BTC, now I don't know if this is a demand coming from their citizens or the government alone, but buying more bitcoins at this point is what I think redundant, but since I have no data to back my statement up, feel free to correct me on this one.

Ehh, the dip buying is a bit more of a PR move in my opinion. He "only" bought 150 BTC, which is more or less $6.8 million. Whereas while El Salvador is definitely not a powerhouse country levels of wealthy, I don't think that $6.8 million will make a significant dent on their balance sheet.

Governments shouldn't use taxpayer's money to participate on a highly speculative and volatile market, that's like common sense.


I don't think he has any insider knowledge, he's just a president with too much power, and it's ironic because Bitcoin was created to resist this kind of power.

This is my hypothesis, posted on another thread a while ago:


While the media keep on making it look like El Salvador is accumulating bitcoin in its reserves much like Microstrategy or Tesla, they are likely covering what needs to be done to back the virtual BTCs people have in their Chivo wallets. The government passed a bill to reserve 150M $ to the Bitcoin Law rollout, so I figure this is part of it.

I do think that from the moment El Salvador made bitcoins legal they had already decided on this part which does mean that the government might buy even more for the long run, I do think that this is not really a bad move for sure, since for the long run that might work out wonderfully and the country is not exactly rich-rich and developed fully as well, do I do think that it's easier for them to take risks. They might just be trying this out and seeing how things work out for real.

I do think that, at the end of the day, this might not be a bad move if they monitor the whole market correctly which is not really a hard task since they can very easily hire crypto specialists and take care of everything as well.

If the bill is passed and some amount of preserved it will help in excessive dip in the value if things go wrong .

The adoption of Bitcoin as legal tender in El Salvador was not some momentary lightbulb
move, it was a considered one especially when the US$ was going to cripple the country
even more as it was devalued and the resulting inflation. The bonus is the saving on transfer
fees from FIAT remittances.

Adopting Bitcoin as legal tender for any country is a complicated process and as
DdmrDdmr suggests it isnt just a matter of buying and hodling. They have to figure
all the implications out on their own, nobody is helping them.

Buying at 44k down from 48k is "buying the dip" we all follow Planb, his floor value
for September is ~43k

He is not really much of a politician, he is just chasing the media headlines that come with buying into Bitcoin - good or bad it doesn't really matter as long as his name gets into more worldwide news streams. In a wold where people like to read up on extremes rather than accept that life can be rather mundane maintenance, this sort of politician is just trying to stand out. Unfortunately these strategies tend to be very short term, focusing on the next election cycle rather than setting up a proper long term fiscal policy. He has gone from one currency that his country has no control over (the US dollar) to two currencies now that Bitcoin have been made official tender.

I doubt El Salvador will be having any bargaining voice in a global market, it feels good that they accepted Bitcoin as legal tender but if you look at the day when they legalized Bitcoin the market went through a major correction which shows that there are investors out there who wants to look at them as foolish, if not there is no way there will be a correction on that day.

Yeah, this was my thinking too. Their stash is quite pitiful really, I think 700 but I suppose it’s better than nothing. I respect their adoption of bitcoin as a national currency much more.

Bukele reminds me of Trump, you have one of the poorest countries in the world to take care of, the 4th wave of Covid knocking at the door, and the economy hit worse than many by the global price increases as its energy-dependent, and what do you do, tweet about buying the dip, which turned out to actually be a case of catching the knife. Looking at how he is rushing things, how he makes every time claim like this, all the tweeter floods, to me seems like rather than trying to promote usage he is actually using the Bitcoin craze for his personal agenda.


This would be a good thing if the buy is triggered by the activity in the wallets.
The bitcoins in Chivo are just some numbers in an app as long as you don't try to cash out, so them buying coins means that they don't have that much need of US dollars, people are keeping coins and not rushing to the ATMs to withdraw those 30$. If they need BTC it means an unexpectedly large amount of people are moving their coins in some other wallets and they need on-chain Bitcoins.

 ;D

he is definitely a fool. I doubt that he has consulted any analyst before buying bitcoin, the worst part is that he still managed to show himself on the social network, and if the price dropped $42000 and dropped to $39000 or worse dropped to 37000$. how would he face his people? I think he should start consulting market analysts before buying bitcoin, even if he says he's making Hodl buy low Is the wiser, if he buys at $44000 and the price drops to $37000 he misses a big opportunity to have bought lower

He probably hopes that Bitcoin will be in a bull market for a lot more time and that people will view him positively because he introduced Bitcoin to them. This is a very risky move, because if the market will turn bearish, people will instead get angry. Imagine some poor family receiving a Bitcoin transfer from their relative working in the US, only to find 2 weeks later that the value dropped by 25%. They will blame Bitcoin and Bukele.

This is the most likely explanation, the money that is being invested in bitcoin right now is not a huge deal for most countries, also as we know that money is going to be given away almost immediately so it's not a big deal if the price of bitcoin goes down a little bit after he buys it, so this is not a problem especially when we take into account that institutional investors have bought amounts of bitcoin way larger than that and they do not seem to want to sell their coins anytime soon.

1. I don't think he is a fool. He is surrounded by people that knows how the market works. They advise him. I doubt buying bitcoin again was his own doing. He is aware of the risk and willing to take it. If all goes downhill, its going to hit their country hard. But they invested in few hundred bitcoins. So I don't think it will have a long term affect on their country.

2. Everyone knows that if one bull run ends, another one is going to start.

100% agree for a country, $6.8 is nothing, it's a PR move.
But, it's a good one. Keep bringing it up again and again, never let it leave the public view that they are supporting BTC and buying more to support the people.
If they keep it up, showing that they are serious and in it for the long term, then it will eventually just be everywhere in the country.

-Dave

Buying the dip on day one of a risk-off situation for equities worldwide due to China and other global issues is a terrible move. This is likely just the beginning of a short/mid-term sell-off that will hit crypto equally hard. We will be lucky if this isn't the start of another bear cycle that we could see a slow bleed with a few large flushes over the next few months or years.  Unless they have some serious cash reserves and are able to double their position as a whole they could already be in some serious trouble financially (not that they were not already)

I don't know what you exactly mean by poorest but I don't consider El Salvador as one of the poorest. The country is not even on the top 50 poorest countries in the world.

Anyway, I am greatly surprised at how the people in the government is buying the dip as if they personally own the money. I am really amazed at how easily they could spend the people's money on something not even backed by the state's annual appropriation plan.

Is this how powerful their leaders are that they could literally just dip on the nation's purse and use millions and millions in USD over something likely not based upon careful deliberation and prioritization?

True. We are talking about the country here not an individual and his dreams. So that money could come out of thin air and who knows he might actually turn it into something big cash inflow for the country. He would be a hero for doing so and then more investors and country peeps will get involved with the act of crypto space.

I am sure that this is well thought process of investment. That could be another public heroic act just to prove that El Salvador is consistently moving towards the crypto hub. Also there is another side for this picture, it is just to pump their balances so that they can have more owned keys and btc's for circulation within the country.

Hi,
Everything with El Salvador in relation to bitcoin, everything, is a path not traveled by anyone, although it may seem so in trivial actions, he is the President of an autonomous country, so until now there is no comparison.

So you cannot make unique analyzes so simplistic-traditional-standard, bitcoin in El Salvador is a matter of government, bitcoin is perhaps in a demagogic phase, bitcoin has its most political phase, in other words it is Beta adoption mode: The Savior, sorry, El Salvador.

It depends on their goal and what they think is the purpose of them buying BTC. It's not like they didn't study it and just decided to buy it. For sure, they have a long-term plan for their investments, and with cryptocurrencies, many countries flourish as well. Imagine having cryptocurrency be legal to you and be used in day-to-day transactions and other countries seeing it. I think it would attract more people to buy and use it as currency.

Absolutely they have a long term plan, they are not buying bitcoin for fun there must have been whole meeting and planning from their whole ministry.
One think i can say they are doing the good thing and it will show effects only in betterment of the country.

It looks like bitcoin is slowly getting accepted in El Salvador. Already 1,6 million people are using official BTC wallet Chivo, which is almost 25 % of whole population. Of course, there are many who oppose crypto which usually happens to every new law or proposition.

Big upward move?The Bitcoin price went from 44K to 52K and then dropped back to 45K USD.
Such 10-20% price movements cannot be called "big upward move",when we are talking about a really volatile asset like Bitcoin.
I read the news that the government of El Salvador bought a small amount of BTC,so it's not a big deal.
I don't think that El Salvador is one of the poorest countries in the world.
I also think that you are definitely trying to FUD with your post. ;D
There's a possibility of a 29K USD BTC price,but there's also a possibility of an 50-60K USD Bitcoin price.
Nobody knows where the market will be heading at the end of the year,but historically Bitcoin had always been bullish at the end of the year(with a few small exceptions).

They have their own plan by buying bitcoin at the dip, although we know that the price can down for more. At least, he can use his time to buy more bitcoin at a low price. Maybe he will buy more if the price is down deeper. He knows something that we do not know, so he shows it on his social media. He knows that bitcoin can come back to the highest price so he decides to buy more bitcoin until that time to increase.

That's a good move considering that the prices are going down, they're practically buying at a discount price but not a lot of their citizens seem to appreciate this but I think it's a temporary thing because when the prices are going up, they would get the biggest profits.

Today, @Bukele seems to be playing around with his bio on Twitter, and even if some speculate to his account being hacked, it seems more likely that he’s mocking some that oppose him and accuse him of being a dictator. A couple of changes made today on his bio (translated):

"Dictator of El Salvador":
https://web.archive.org/web/20210921035447/https://twitter.com/nayibbukele

"The coolest dictator of the whole wide world":
https://web.archive.org/web/20210921083404/https://twitter.com/nayibbukele
 
He should be more aware of how everybody has eyes on how bitcoin is being deployed in the country, and the image being projected and messages he may be providing are subject to scrutiny. Playing around with the twitter bio to mock part of his detractors may not be the wisest move, especially when all eyes are placed on what’s going on over there.

Bu the way, they now claim 1.6 million Chivo users (https://twitter.com/nayibbukele/status/1440033171009982475), and on the rise. They’re going to have to buy more soon to back the (virtual) BTCs claimed in the Chivo System …

His tweet says that they've got now 700 bitcoins in total and that's around $30M if price is @ $43k.

Yeah, I saw that too when I've checked. He seems to be proud of it putting that on his bio.

Nobody questions governments when they buy random stock overseas or invest in high risk mutual funds that are sold to them from private companies or even other governments.

People should be happy their government is diversifying and investing into something that cannot be manipulated like stocks or funds and is resistant to wars and other disasters.

I Don't think so he is a fool. I really believe he is surrounded by people who  know what the market works. I do believe he know what is good.. People should be happy because their government know what's good for their country.

one risky decision if buying bitcoins just to chase fomo in the headlines, with 6.5 million $ should be used for real economy that can support economic progress better than buying speculative bitcoin like this,

If El Salvador Pres. Bukele believes in Bitcoin so let it be, otherwise, if something bad will happen he will be the one to suffer the consequences of his action. Anyway, the question is how much Bitcoin was El Salvador bought in the dip? Is it worth Billions of dollars that can affect the countries financial situation if the long bearish period will ever happen again? according to some info El Salvador has only 700 Bitcoins in their holdings if it's true that's not big enough to create damage to their financial stability.  

It was an assertive and reckless president. He bought it for a reason. Many companies also bought Bitcoin in the $48000 region.
It's not that they are fools to buy at such a high price, but they are more foresight than those who sold at $41k last night.
I believe the president of El Salvador did the right thing. Maybe he has successfully bottomed.

probably that's the point of buying bitcoin at the dip.. I dont know why there's still some people who don't appreciate what others doing, in fact it's a contribution as well for quick recovery of bitcoin. I mean any amount is good at least when it rose up again there's still a return.. And its a big opportunity for El Salvador since he used it as a legal tender in his own country, like you said a discount which is true. Lol

El Salvador bought a large amount of bitcoin at $48k the market price should have gone up, but the bitcoin price was going down. Broadly speaking if he sells at the current figure then he incurs a huge loss. but as big as he is including the latest successful people in the following year. the current price correction has little effect on them, as they aim to adopt long term.

Honestly, picking up Bitcoin regardless of the price makes sense. After all there’s only 21 million of them. The price will continue to go up and he’s a smart man for picking up for (and diversifying)

By the way, $44k is not a dip level anymore. Because the price went down to even $40k. And we never know what the dip price will be at the end of all this. I think that we can see levels below $40k again soon if this price correction continues. While I was waiting for a bull market to start, something completely opposite happened and we don't know what will happen in the coming days.

According to some sources i heard El Salvador president is holding right now 700+ BTC. Just think he entered again why because he know it is again a time where his countries Against poletical party is always humiliating him. When bitcoin price down after officially legalize bitcoin in El Salvador. El Salvador losses a huge money. And that poletical party humiliate him a lot. His was quite and he us still quite and grab btc so that when bitcoin price up then he can show all of them who criticism him. And i think El Salvador president doing a great job. And he appreciate all people of his country to take entry from this point. Which is great.

it seems that constant reporting and as if it is a big thing is the source because it is true that in comparison, this is a very small thing and is nothing.
but on the other hand this will be better and more profitable on the one hand, considering that if things like this continue to be exaggerated indirectly people will tend to think that their decisions are really successful and indeed it will directly make the prestige of elsavador nor bitcoin would be good. and frankly it's better done than nothing.
I doubt if there is such a thing but it would be more possible if he really doesn't understand and uses his position as head of state to provide policies and decisions, apart from that I don't think there is anything other than the power of factor.

That sounds right, they are holding bitcoin and now they are participating in the speculative game. They would ring a bell to the people as they are a country, but their holdings is not huge enough to be one of the whales that could result in significant market movement everytime they buy.

It was a wrong decision to make it sell but it was better to buy more rather than doing this. If El Salvador wanted to keep strong in regards to Bitcoin adoption, then must have to set up a huge fund for it and buy more Bitcoin during the dip. Honestly, they need to accumulate more Bitcoin and this adoption comes to reality otherwise it won't become sustaining.

Elsavador has legalized the use of bitcoins and El Salvador has also bought its first 400 bitcoins. President Nayib Bukele said that "our broker will buy more as the deadline approaches".
The announcement managed to send bitcoin's price up one day before El Salvador officially adopted it as legal tender alongside the US dollar.

I don't think they are buying in lower price by planned because the purpose of buying bitcoin for their country are to legalize and making bitcoin transaction as their daily transaction instead of making investment in bitcoin.
The president is also have a plan to have El Salvador’s state-run geothermal utility use energy from the country’s volcanoes to mine bitcoin.
And also 48k price is not high price, it was 60k before that means the price is still cheap right now, even more cheaper if we see the current price.

Would you Please create a Single Post about EL SALVADORS etc? that country already accepted and adopted bitcoin so in all opportunity and cases these kind of thing will come along the process so it is annoying to see each time there is a connection about El salvador's movement towards bitcoin.
Indeed that this is the most controversial occasion we are celebrating now here in crypto but we also knew that this is what it is.

he's not the President.. he's the Dictator  ;)

El Salvador bought more bitcoin 2 days ago when bitcoin was around $42k-$44k, if I am not mistaken, that could be a discount after they bought bitcoin before. They can see a good opportunity to buy more bitcoin when the price is dropping to accumulate the bitcoin and hold it. Until now, they hold 700 BTC, which I believe they will buy more amount, especially when the price still stays at this current price. I hope the other countries can see what El Salvador did and followed them to buy bitcoin.

Its not a matter of he knows or not, but bitcoin and crypto have been a hot topic that has been looming around many big companies and whether they are going to invest in it and use it as a payment method or not, not to mention that it has been gaining a lot of popularity among a lot of people, and that a lone is good enough to push the demand on it, and even though that it might not seem like it now and the price is going down, in the long run he might be making a huge decision that might pay off really well if things go the way he wants to.

If this $6.8 million purchase is the only transaction they are going to perform in the entire year, then it may be an insignificant amount. But that is not the case. If I am not wrong, the government has already made purchases 3-4 times during the last 2 weeks. And doing by this rate, the combined worth may easily be in hundreds of millions of USD by the end of this year. And for an impoverished country like El Salvador, these amounts can be quite considerable. From what I heard, their gold reserves amount to just $3 billion.

Agreed, is he taking a risk by doing this when no other country has declared bitcoin to be a legal tender? Yes, but it is a calculated risk, if he happens to fail then I do not think there are going to be huge economic consequences for the county as the amount of bitcoin that is being bought and the infrastructure is cheap as well, but his political image could be damaged beyond repair, however if this becomes a success then the benefits the country could receive are enormous and with this his image as a visionary leader will be enhanced dramatically.

if they consistently are doing that, they might one of the bagholders of Bitcoin at the end of this year. One of those whales who holds a million dollars worth of Bitcoin but with their economic capabilities, that seems so hard for them. Well, we never know their plans, they might keep it secret until we've heard the news about it.

But this it looks more interesting move from the government and they are pushing through wide crypto adoption.
https://www.cnbc.com/2021/09/07/crypto-news-el-salvador-buys-bitcoin-nft-market-boom-with-loot.html

What right do you have to use such statement to illustrate his perspective? If he thinks $44k is a dip then that's fine cos we all does not know what will happen to the market next cos the market might surge high after the recent fall. He has market analysts and speculators that analyze the market for him and maybe the market might be dance to there music.